Gibraltar Formally Welcomes Cryptocurrency with RegulationPublished January 9, 2018 by Lee R
Gibraltar has ushered in one of the first cryptocurrency regulation models.
An interesting piece of crypto-regulation has arisen in Gibraltar.
Rolling in to the Rock
As of January 1st, a protective mechanism designed to provide insulation against businesses that take cryptocurrency went into effect in Gibraltar. New hope for optimised global regulation springs from an actual crypto regulation model that could promote the well-being of all online enterprises, above and beyond gaming that utilizes blockchain-supported cryptocurrency transactions and play.
Adapting Protection Priorities
Customers and the reputation of Gibraltar itself are the longstanding twin priorities of the regulation protection. The blockchain regulations specifically call for companies storing and transmitting value to be licensed by the Financial Services Commission (GFSC).
The Licensing System
Called the Digital Ledger Technology (DLT) Regulatory Framework, Gibraltar’s first specific cryptocurrency regulation should pave the way for acceptance of cryptocurrency and not be seen as a direct protective interventionary mechanism by any means. The framework lays down the foundation for cryptocurrency sector legislation in a region which holds financial services and online gambling as the twin pillars of an otherwise insulated economy.
Regulation Head Speaks
Of the new regulations, GFSC Risk and Innovation Department head Nicky Gomez asserted his organisation’s “eagerness” to work on “some interesting and innovative ideas with (license) applicants.”
Hope in the Land
Gibraltar is indeed an ideal jurisdiction in which to explore optimised cryptocurrency regulations models. With a legal system decidedly autonomous from the United Kingdom, Gibraltar has established a long precedent of staunchly pioneering government policies and economic priorities.
Increasing the Haven
To this end, Gibraltar has become a haven for ambitious financial companies and online sports betting and gaming businesses due to unique corporate tax incentives and relaxed regulations that encourage organisational growth, exploration and innovation.
The regulations call for every DLT provider to communicate with its customers fairly, clearly, and in a specifically transparent fashion respecting risks and fears that both customers and businesses may commonly display in new licensing and interaction marketplaces.
In addition to sensibility, crypto-licensed companies in Gibraltar must under the new regulations proactively protect client assets and money, including “contingency, disaster recovery and crisis management plans.”
The Implications of Crypto Regulation
The way this takes place has the opportunity to establish Gibraltar as more than just a haven for cryptocurrency play, but establish Gibraltar the jurisdiction as a regulation pioneer in adaptation of blockchain technology, enhancing the appeal of Gibraltar to both natives and prospective new market entrants alike.