Gibraltar prepares to regulate the work …

Gibraltar prepares to regulate blockchain startups

The Gibraltar financial regulator unveils the provisions of the forthcoming regulation to regulate the activities of blockchain companies in the country.

The nine-page document, prepared by the Gibraltar Financial Services Commission, was posted on the Gibraltar government website. The new law may come into force in January 2018 and outlines the rules for using digital registry technology for commercial purposes, including the storage and transfer of valuables. Obviously, cryptocurrency exchanges fall into this category, but the provisions of the new law apply not only to them: it works with any “assets, savings and other forms of property, rights and interests” on the blockchain. Investment companies and other financial services operating in the blockchain field will also be regulated by the new law.

It is assumed that such services will receive a license, which will be a guarantee of their compliance with the requirements of the regulator. These requirements include honesty and transparency of service, protecting customer assets and maintaining a high degree of security of the service as a whole. When the law comes into force, Gibraltar will become one of the few jurisdictions in which the activities of blockchain companies are fully regulated..

Gibraltar Trade Minister Elbert Isola commented on the forthcoming document, saying his country traditionally promotes innovation while at the same time integrating it into a well-defined regulatory environment.

Gibraltar prepares to regulate the work ...

“We have done this before, we will continue to do so,” the local Gibraltar Chronicle quoted Isola as saying..

Earlier, the country’s leading stock exchange GSE announced its intention to implement blockchain in its own operational activities, including in the settlement and trading platforms. And at the end of September, the Gibraltar Financial Services Commission issued a warning to cryptocurrency investors and promised to settle the ICO.

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