John Culatto
GIBRALTAR is bringing in new rules for Distributed Ledger Technology companies wishing to set up shop on the Rock.
The British Territory has become a centre for startups in the cloud database technology world.
Gibraltar Finances Services Commission believes it need to adapt to a fast changing market.
“As well as offering further clarity on key areas, the amended guidance notes also update the risk framework,” said the Government.
“This will distinguish between virtual assets and virtual asset denominated instruments that are arguably higher risk.
“It will also require additional factors or on-boarding tests to be considered.”
The work to modernise regulation has taken into account the advice of the Financial Action Taskforce (FATF) on virtual asset service providers (VASP).
The Government is also consulting with an international group of professionals about the travel rules for these areas.
“Today marks another milestone moment for Gibraltar’s thriving DLT/VASP ecosystem,” said Minister for Digital and Financial Services, Albert Isola.
“We are refining the regulatory framework that guides companies through the licensing process and beyond.
“Our jurisdiction’s agility has been a hallmark of our success to date, with a progressive open dialogue between regulators and industry figures.
“It is helping to craft a framework that satisfies natural regulatory prudence while allowing for a sensible amount of regulatory latitude to help projects innovate properly.”
The process, which started last November, has involved the GFSC, the Gibraltar Association for New Technologies (GANT), and current DLT Provider license-holders.
Currently there are 13 DLT companies on the Rock, including large international groups such as eToro, Huobi, Xapo, LMAX, Bitso and Gnosis.
“With a finely tuned DLT regulatory framework, Gibraltar is even more equipped to broaden our DLT community and continue Gibraltar’s strong arc of economic growth post-pandemic and Brexit,” said Isola.
“We look forward to welcoming more quality projects into our blockchain ecosystem in the months and years ahead.”
