Bitcoin Gambling at Malta to be Tested Soon
Bitcoin Gambling at Malta to Become Tested Soon
April 4, 2018: • No Comments
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A 6-Month Probe Into Cryptocurrency and Token Gambling
As detailed by the MGA, the new evaluation will begin in the second quarter of the year and interval for 6 months -- a period which may be extended or shortened if needed. Prior to the launch of the sandbox evaluation, concerned stakeholders from the industry have been encouraged by the MGA to check within the evaluation parameters and publish their opinions by the end of April.
According to the information supplied by the operator, should licensees be allowed to present cryptocurrencies that they might have to validate the ownership of the cryptocurrency wallet address of every individual user. Generally, all players will be allowed to use only one pocket for each cryptocurrency they want to use and those pockets will have to be confirmed with a single consideration. Any concessions and transfers into other pockets will be prohibited, unless the exception has to be made in rare cases.
Included in the evaluation will be games that are partly or fully hosted on a blockchain but also games hosted on casino servers that use blockchain technology to offer transparency and evidence of equity. And, naturally, all AML (Anti-Money Laundering) provisions will have to be admired during the test.
The MGA, that is among the biggest online casino licensing bodies in the world, first proven strategies to test blockchain implementation in last October as it gave few details of the reach of the testing procedure. Now, however, new data has emerged about what the regulator will soon be probing and the way will MGA's online gaming licensees be allowed to execute cryptocurrencies into their platforms.
Reportedly, apart from putting already existing cryptocurrencies in the centre of its evaluation, the MGA are also reviewing tokens generated by operators within an individual basis. But, any token issued by an operator would be exempt from the currency market rule that the MGA is seeking to apply, which forbids the exchange of digital monies to fiat money and vice versa.
From the time that the probing period ends, the Malta Gambling Authority will likely be far from the UK Gambling Commission which realized Bitcoin and cryptocurrencies back in 2016. But as among the two leading online licensing authorities on a worldwide scale, MGA's implementation of blockchain and cryptocurrencies will likely result in a wider growth of Bitcoin online casinos.
Wallet Transfers, Deposit Limits, and Smart Contracts Part of Test
Per the new info, gamblers won't be permitted to exchange fiat money for cryptocurrencies and vice versa within an operator platform. They will thus have to deposit, bet, and withdraw in a single currency or cryptocurrency. The sandbox evaluation will also probe the usage of smart contracts, provided that all other guidelines regarding pocket verifications and limits are respected and there are mechanisms to void a smart contract should a flaw within the newest technology be found.
Since cryptocurrencies may be considerably volatile, prospective operators will be asked to set up distinct player-determined wagering-, reduction-, and deposit limits than the limitations applied to normal (fiat) monies. Throughout the evaluation, the MGA will likely be placing a cap on cryptocurrency wagering and deposits into an amount of $1,000 a month in any cryptocurrency equal. To help them decide whether a player has breached the maximum deposit amount it times of price volatility, operators will also be provided together with diagrams.