Menu
Nov 12 - RGP Commissioner Announces Promotions

Nov 12 - RGP Commissioner Announces…

RGP Commissioner Ian McGr...

Nov 12 - Picardo And Garcia Set Off For High-level Political Meetings In London

Nov 12 - Picardo And Garcia Set Off…

The Chief Minister Fabian...

Nov 12 - GSD Says It Would Support Second Referendum

Nov 12 - GSD Says It Would Support …

The GSD has said that it ...

Nov 12 - Government Revise AML/CFT Guidance Notes For Real Estate Agents And High Value Goods Dealers

Nov 12 - Government Revise AML/CFT …

Government say they have ...

Nov 12 - Gibraltar Port Authority Promotes John Ghio To Marine Officer

Nov 12 - Gibraltar Port Authority P…

Gibraltar Port Authority ...

Nov 12 - Gibraltar Port Authority Attends International Bunker Industry Association Annual Convention

Nov 12 - Gibraltar Port Authority A…

Manuel Tirado, CEO and Ca...

Nov 12 - Cavalcade Committee Inviting Entries For Three King’s Cavalcade 2019

Nov 12 - Cavalcade Committee Inviti…

The Cavalcade Committee i...

Nov 12 - Gibraltar Attends World Travel Market

Nov 12 - Gibraltar Attends World Tr…

Gibraltar recently partic...

Nov 12 - Delivery Of New Gibraltar Telephone Directory Now Complete

Nov 12 - Delivery Of New Gibraltar …

Gibtelecom would like to ...

Nov 12 - Six New Plays To Be Performed At Bayside

Nov 12 - Six New Plays To Be Perfor…

Dramatis Personae will la...

Prev Next

Feb 12 - Government And FSC Announce Plans For Token Legislation

The Government of Gibraltar and the Gibraltar Financial Services Commission (GFSC) are developing legislation relating to tokenised digital assets (tokens), essentially those created and traded using distributed ledger technology (DLT).

Following the GFSC’s Statement on Initial Coin Offerings in September 2017, Gibraltar’s Minister for Commerce, Albert Isola, announced that Government’s position on initial token offerings (also known as initial coin offerings or ICOs) would be formulated by this month.

In December, the Government sought the views of local stakeholders through a discussion paper on token regulation circulated to Gibraltar’s Finance Centre Council, an umbrella organisation comprising local professional associations.

After taking into account stakeholder feedback, work has now begun on drafting legislation to regulate:

  • the promotion, sale and distribution of tokens by persons connected with Gibraltar;
  • secondary market activities relating to tokens, carried out in or from Gibraltar; and
  • the provision, by way of business, in or from Gibraltar of investment advice relating to tokens.

A bill is expected to be considered by Parliament in the second quarter of 2018.

While Gibraltar’s DLT regulations, which came into effect on 1st January 2018, bring a licensing regime to intermediaries using DLT to store or transmit customer assets, they do not extend to the use of tokens as a means of raising finance, typically for early-stage start-ups.

The proposed token regulations will establish disclosure rules, requiring adequate, accurate and balanced disclosure of information to anyone considering purchasing tokens, and measures to detect and prevent financial crime such as money laundering and terrorist financing. 

Albert Isola commented, "This Government successfully delivered DLT Regulations that came into effect in early January 2018.  I am very pleased and encouraged by the volume and quality of applications received by the GFSC. I announced last year that we would introduce complimentary yet distinct legislation covering token sales and have asked the GFSC to complete this work-stream at the earliest opportunity.  We remain fully committed to ensuring that we protect consumers and the reputation of our jurisdiction. In addition, we are also conscious of providing safeguards to those firms that have chosen Gibraltar as their home. I am grateful to all those that have provided their observations on the discussion paper issued in December 2017. The DLT Working Group, which includes members of the Innovation Team at the GFSC, have considered all the issues raised and are now proceeding to prepare initial drafts.” 

Siân Jones, Senior Advisor on DLT at the GFSC said, “Token regulation is the natural progression following the regulation of DLT Providers, being vital to the protection of consumers. One of the key aspects of the token regulations is that we will be introducing the concept of regulating authorised sponsors who will be responsible for assuring compliance with disclosure and financial crime rules.”

The regulation of investment funds involving digital assets such as cryptocurrencies and similar DLT-based tokens is also being reviewed.



Useful Links

 
www.easy.office.gi
Virtual & Physical Office Space in Gibraltar

Other Items