Gibraltar Presents New Cryptocurrency Laws
As of the first day of this year, the jurisdiction of Gibraltar has implemented a framework designed to regulate local businesses’ acceptance of cryptocurrencies like Bitcoin and Ethereum. This model has created new hope for global regulation of digital currencies by providing a tangible regulatory framework that could promote the safety and earning power of countless online businesses that use Blockchain payment and play systems.
The jurisdiction's two main priorities when it comes to iGaming regulation are its customers and the reputation of Gibraltar as a world leader in regulatory progress. The new regulations for Blockchain-based technologies now allow companies that store and transmit virtual value to obtain licenses from the local Financial Services Commission, coming as an unparalleled step towards the worldwide acceptance of such firms and their offerings.
DLT Laws Pave The Way For Progress
Dubbed the Digital Ledger Technology Regulated Framework (or DLT framework), Gibraltar’s very first regulatory regime specifically for cryptocurrencies is expected to pave the way for other countries to follow suit. The GFSC has noted that it should not be regarded as a ‘direct protective interventionary measure’ in any way, noting that the framework instead creates a foundation for digital currency legislation in one of the world’s largest gambling and financial services hubs.
Commenting on the new regulations GFSC Head of Risk and Innovation, Nicky Gomez, has noted that his organisation is very eager to work on some new and innovative concepts with future DLT license applicants.
More Transparency For Customers
Gomez’s organisation has also stated that Gibraltar is an ideal jurisdiction in which to test regulated cryptocurrency models, given its autonomous legal system and long history of strict economic and government policies. It is for these reasons that the region is seen as attractive by financial firms, gambling providers and legal mobile casinos, not to mention unique tax incentives and appealing regulations that bolster innovation and growth among these firms.
The new regulations will ensure that all DLT providers communicate transparently with their customers, especially with regards to the risks and concerns that both consumers and businesses may have in terms of new licensing requirements and marketplace interactions.
The laws also have an unprecedented opportunity to help establish Gibraltar as a regulatory pioneer in the modern adaptation of Blockchain and digital currency technology. This would have the added benefit of increasing the region’s appeal to both local and offshore market entrants, thereby attracting increased cash flow and innovation to the gambling and finance mecca.