MGA publishes Policy on the use of DLT by Authorised Persons

 

Following the conclusion of the appropriate consultation period, the Malta Gaming Authority (MGA) has announced the publication of its Policy on the Use of Distributed Ledger Technology by Authorised Persons.

 

The Policy shall take into effect as from Monday 30 January 2023 and shall serve as an effective replacement for the MGA's 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 (the 'Sandbox Framework').

 

The Policy is thus intended to provide a comprehensive and up-to-date outline of the MGA's position with respect to Distributed Ledger Technology (DLT) applications, as well as, where possible, streamline the requirements previously applicable via the Sandbox Framework in light of regulatory experience gained over its period of operation; all while remaining consistent with the MGA's regulatory objectives.

 

As per Sandbox Framework, this policy requires ITAs, including DLT platforms and smart contracts, to be audited by auditors registered with the MDIA in terms of the ITAS Act, in accordance with the directions given by the MGA, on a case-by-case basis.

 

The MGA is also revising the System Documentation Checklist, System Audit Checklist, and System Review Checklist, which have all been updated to reflect changes brought about by the Policy.

 

How can BDO help?

BDO Technology Advisory Limited is licenced by the MDIA to conduct Systems Audits. 

 

BDO Malta can assess the state of an entity’s readiness by evaluating the kind of ITA that is being offered, the specific Control Objectives that are applicable, and any controls that are relevant to the delivery of the service. Additionally, processes, privacy, information security, procedures, system configuration, and organisational structure are examined and evaluated in detail, prior to a Systems Audit being conducted. 

 

We can also assist clients in reviewing and updating their policies and for general AML Compliance support. 

 

 

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