Gibraltar’s crypto regulation goes into effect

Legislation on cryptocurrencies in the British overseas territory went into effect on January 1 2018.

Gibraltar.- The regulation seeks to protect consumers and the jurisdiction’s reputation through a rigorous licensing system. It targets blockchain technology, ensuring that companies storing and transmitting value are licensed and monitored by the Gibraltar Financial Services Commission (GFSC), which polices the new Digital Ledger Technology Regulatory Framework.

The law was introduced in December, when the Legislature passed updated financial services regulations, including new measures governing the cryptocurrency sector.

The risk and innovation department head of the Gibraltar Financial Services Commission, Nicky Gomez, has confirmed that applications for the new licenses are now open. He said that his organisation is the first regulator to implement a digital ledger technology regulatory framework in collaboration with the financial services sector and the Gibraltar government.

Provisions in the new regulations include: requirements for clear, honest and transparent communication by DLT operators with their customers, along with arrangements that protect and preserve the assets and deposits of clients, including “contingency, disaster recovery and crisis management plans”.