Gibraltar Bill Passage Paves Way for Blockchain Regulations

Lawmakers in Gibraltar approved a piece of legislation last week that fits into the government's broader plans for blockchain.

AccessTimeIconDec 11, 2017 at 5:01 a.m. UTC
Updated Sep 13, 2021 at 7:15 a.m. UTC

Lawmakers in Gibraltar approved a piece of legislation last week that advances the government's broader plans for blockchain.

On Dec. 6, legislators cleared a bill that amends the British overseas territory's Financial Services (Investment and Fiduciary Services) Act in order to "extend measures for the protection of investors to the customers of licensees carrying on controlled activities which are not investment services."

As arcane as that may seem, the bill represents a legal tweak intended to pave the way for new rules that officials made public last year as part of a bid to legally define blockchain's use in storing and transmitting value under Gibraltar law.

Albert Isola, Gibraltar's Minister of Commerce, celebrated the bill's passage and pointed to expected demand for licenses once the DLT-specific regulations are formally introduced in the new year.

Isola remarked:

"Gibraltar is one of the first jurisdictions in the world to introduce a regulatory framework for [distributed ledger technology] businesses thereby providing the regulatory certainty required by quality firms that we aim to attract to Gibraltar. I am aware that there are a number of businesses waiting to file their applications with the Gibraltar Financial Services Commission on 1st January 2018 and this is excellent news."

Given the passage of the latest bill, Gibraltar's Financial Services (Distributed Ledger Technology Providers) Regulations 2017 is likely to be approved as well. The next year may also see regulators in Gibraltar move to develop rules specifically aimed at initial coin offerings (ICOs) as suggested in a September statement on the blockchain funding model.

At the time, the Gibraltar Financial Services Commission said that it is "considering a complementary regulatory framework covering the promotion and sale of tokens, aligned with the DLT framework."

Gibraltar friend image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown
2
CoinDesk - Unknown
Cosmos-Builder Ignite Cuts Headcount by More Than 50%, Ex-Employees Say

The reductions come amid a crypto market crash, and after the return of Ignite’s controversial ex-CEO.

CoinDesk - Unknown
3
CoinDesk - Unknown
India's Day Of Reckoning With ‘Most Controversial Crypto Tax’ Is Here

The country's 1% TDS is predicted to exacerbate negative market sentiment and add to the woes of the crypto community.

CoinDesk - Unknown