Gibraltar’s new regulations on crypto-currencies now in effect

Gibraltar, home to many of the world’s online gambling operators, has announced that new legislation on crypto-currencies went into effect on January 1 2018 with the goal of protecting consumers and the jurisdiction’s reputation through a stringent licensing system.

The regulation 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.

This 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, said in a statement that applications for the new licenses are now open, claiming 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.

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

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