Gibraltar’s financial service regulator has published a draft of its comprehensive regulatory framework for companies that offer blockchain services and is expected to take effect starting from January 2018. Gibraltar is developing a friendly business atmosphere for blockchain startup; its publication encompasses all commercial use of Distributed Ledger Technology (DLT), mainly, store and value transmission. As this includes cryptocurrency trade, the value is broad defines to include holding, assets or other methods of ownership, interest or rights. Investment services similar to cryptocurrency would, therefore, be covered under this definition.
Under the regulation, Distributed Ledger Technology service provider shall be issued a working license, as long as they obey some regulatory rules.
As defined in the document, these rules are integrity, honesty, proper regard to the risk of client assets and keeping up a high level of cybersecurity. More so, the decisions are accepted by Gibraltar’s governing body; the British Overseas Territory will be one of the few jurisdictions in the world that will provide a completely regulated system for companies working with the blockchain.
Addressing the Gibraltar Chronicle, Commerce Minister Albert Isola mentioned that this was distinctive of the nation’s determination to encourage innovation while keeping up substantial regulatory presence. He said: “We have done this before and will do so again.”
The CEO of the Gibraltar Financial Service Commission, Samantha Barrass, stated:
“This regulatory framework demonstrates that regulators can keep up to date with technology without stifling innovation, protect consumers and create a well-regulated safe environment in which financial technology can flourish.”
Earlier of 2018, the country’s Stock exchange, the Gibraltar Stock Exchange (GSC), unveiled the intention of integrating blockchain into its settlement and trading framework.
More so, a month ago, the Gibraltar financial regulator stated warning to investors about Initial Coin offerings (ICOs). The dangers involved in the ICO ventures drove the authorities to consider a complementary system for token sales in a DLT, as said in the statement. The present draft did not directly mention the use of the blockchain.