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Gibraltar launches new regulation for protection of Cryptocurrency users

Jan 03, 2018 Posted /  6020 Views

Gibraltar launches new regulation for protection of Cryptocurrency users

While much bigger countries and developed nations are in dilemma to institute cryptocurrency and deliberating about its regulations, Gibraltar a small British overseas territory on Spain’s south coast has launched a mechanism which is specifically designed to secure customers of cryptocurrency businesses and its own reputation. The regulation mechanism went into effect on January 1, 2018. The regulation is intended towards the blockchain technology companies who are recording and transmitting value. According to the announcement, the companies need to be licensed by Financial Services Commission (GFSC).

Gibraltar becomes the World’s First

The regulatory model called the Digital Ledger Technology (DLT) Regulatory Framework and was introduced last month when the Legislature of Gibraltar approved a bill specifically created to revise and amend its financial services regulations. The DLT framework established a new legislation governing the cryptocurrency sector in the country. It is significant to remember here that financial services and online gambling are deemed as the major pillars of the economy.

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Nicky Gomes who is the head of the GFSC’s Risk and Innovation department in media round said that the government is really excited and they finally greetings the applications coming from DLT providers. Further, he said that they are expecting that they would be very busy in the coming months and also they are looking forward to work on some motivating and novel with applicants.

GFSC’s head elucidated that the department is now the first regulator to institute a DLT Regulatory Framework in association with the financial services industry and the government of Gibraltar. The officials in the ministry remarked that it is a very encouraging for them as they are looking forward to the challenge.

Reigning in Europe

Gibraltar, which is known for its British connection, has a legal system that is very much autonomous from the United Kingdom being an overseas territory. This independence has allowed the territory it to fabricate its own government plans, legal systems and sustain its own economic priorities. Furthermore, Gibraltar has gained the attention of many big financial firms apart from online sports betting and gaming businesses, which flourish openly in its jurisdiction. These kinds of businesses are inclusive of corporate tax incentives supported by hassle-free regulations. This has given an unprecedented advantage to the country over others in the EU.

In the last month of 2017, the country formed a 17-member local parliament panel, which advanced the territory’s financial and economic sector with a newly adopted bill and contemporary policies. It cemented a design for a substantial set that comprehensively would address problems presented by cryptocurrencies and providing control to operations taken by the companies in the sector. While achieving this plan Gibraltar has upgraded on completing its intentions to establish itself as an appealing location for crypto businesses. It can be possible that these new changes might create a trademark pillar to support its economy. And these small territory citizens will now stand up from its past of British naval dockyard businesses which till now accounts for and is dominated by more than half of their economy.

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Tags: Gibraltar cryptocurrency protection of Cryptocurrency

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