MGA Updates: Amendments To The VFA Sandbox Regulatory Framework

The Malta Gaming Authority ('MGA') issued a communication regarding the amendments to the Virtual Financial Assets (VFA) Sandbox, specifically to the Guidance on the use of Innovative Technology Arrangements and the acceptance of Virtual Financial Assets and Virtual Tokens through the implementation of a Sandbox Environment ('Guidance').

The Guidance was launched a few months following the promulgation of the VFA legal framework, with a view to enable the use of virtual assets and distributed ledger technologies ('DLT') by gaming operators. The VFA Sandbox was initially divided into two phases and is currently in its second phase running until the end of December 2021.

Aspiring VFA Sandbox participants must be licensed by the MGA and possibly even by the Malta Financial Services Authority ('MFSA') as further set out below.