Gibraltar has put forward a mechanism which is geared to protect customers and users of cryptocurrency businesses in the country. The new regulation measure came into effect on the 1st of January. The new law will target the blockchain technology which means all firms which store and transmit value now have to be licensed by the Financial Services Commission.
The new number regulation measure, titled the Digital Ledger Technology, was introduced after the Legislature of Gibraltar approved a bill which was meant to update the financial services laws. The approved bill laid a new foundation which allowed for new legislation which can help govern the cryptocurrency sector. The new law also realizes the financial services and the online gambling industries as the backbone of the Gibraltar economy.
Nicky Gomez, the head of GFSC Risk and Innovation Department, in an interview said that they were excited to finally receive the products from the DLT providers. He mentioned that they were ecstatic as they waited for applicants, to work on new and creative ideas. He also noted that the GFSC was the first firm to produce a DLT framework which was in tandem with the financial services in the country. He also said they were eagerly looking forward to the challenge and that they were in exciting times.
Gibraltar is popularly known as a system for financial services. The British overseas territory has its own independent legal system from that which works in the United Kingdom. As such, the country has managed to create government policies that put their economy at the forefront without astounding results. The country has managed to attract most gambling, sports betting and gaming businesses. The country has some relaxed taxes and has significant incentives and relaxed regulations conducive for many businesses. This is unlike some EU countries, therefore most businesses prefer having bases in the British overseas territory.
The new regulation comes as the local parliament voted to modernize the financial services laws in the country with a new bill. The parliament voted back in December, but the new law has paved a way for businesses in the country. It also allows them to address the various complex challenges that are coming up as a result of cryptocurrencies. Therefore, Gibraltar has again put itself forward as a champion of progress in the financial sector, particularly the cryptocurrency industry. With the new innovation, the country might be able to build up a pillar to the economy. And with that, they can forget about the times the country was mostly reliant on the British dockyard for half of their economy.
The country has put forward principles that every individual or company willing to do business in the country has to follow. For example, the laws dictate that every DLT provider should have clear, concise and fair conversations with their clients regarding the business. Companies are also obliged to have arrangements to better keep clients assets and money protected.