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Blockchain milestone for Gibraltar Stock Exchange

Embargoed to 0001 Wednesday September 19 File photo dated 16/10/15 of a Bitcoin ATM. The "wild west" world of cryptocurrencies should be regulated by the City watchdog, MPs have said. PRESS ASSOCIATION Photo. Issue date: Wednesday September 19, 2018. In a new report, the influential Treasury Committee has warned that some investors in the blockchain-based assets were not fully aware of the risks and should be prepared to "lose all their money". See PA story CITY Cryptocurrency. Photo credit should read: Dominic Lipinski/PA Wire

The Gibraltar Blockchain Exchange was yesterday granted a full licence as a provider of Distributed Ledger Technology (DLT) from the Gibraltar Financial Services Commission under the Gibraltar’s Financial Services Regulations 2018 DLT framework.

The granting of the licence means that the Gibraltar Stock Exchange, of which the Gibraltar Blockchain Exchange is a subsidiary, has become the first stock exchange to own a regulated blockchain exchange.

Nick Cowan, CEO of the Gibraltar Blockchain Exchange, said: “Securing authorisation as a DLT provider here in Gibraltar is affirmation of our tireless efforts to position the GBX among the premiere Digital Asset Exchanges globally.”

“Today’s announcement renews our ambition to create a world leading, institutional-grade token sale platform and Digital Asset Exchange.”

“We’re incredibly excited to build on this wave of momentum following our full-scale public launch in July.”

The licence that has been acquired by the GBX is Category 3, representing the highest category that can be awarded within the DLT regulatory framework.

The introduction of Gibraltar’s DLT regulatory framework in January 2018, making Gibraltar the first jurisdiction to introduce regulations around DLT, was heralded as a hugely significant step for the fast evolving global blockchain ecosystem.

The framework has helped nourish Gibraltar’s fertile ground for blockchain and crypto innovation.

Attaining a full DLT licence caps a significant phase of sustained progress for the GBX, which underwent its full-scale public launch in July 2018, thereby opening the exchange to members of the public.

Mr Cowan continued: “This licence means a great deal to the entire GBX community, not least our users.”

“From the very beginning we have sought to build a platform defined by stringent regulatory safeguards and effective risk-based controls, while promoting the sensible and sustainable development of the industry.”

“This authorisation is an endorsement of this long held position and evidence of the hard work put in up to this point.”

As part of the initial application assessment, the GBX began communication with the GFSC to determine whether its proposed business activities would require licencing.

A full submission was then subject to an initial risk assessment by the GFSC, followed by a presentation outlining a business plan that met the nine regulatory principles.

“Gibraltar has found the right blend of sensible and supportive regulation, which has helped position the jurisdiction as a lodestar for the global cryptocurrency space, while allowing blockchain companies to flourish,” Mr Cowan said.

He added that Gibraltar’s emergence as a leading crypto hub hasn’t happened as a result of rushed regulatory action, but rather a methodical, considered approach.

He said: “Crucially, here in Gibraltar there has been a realisation that the pursuit of innovation should never come at the expense of sustainability and long-term development.”

“I look forward to seeing this trend continue in the months and years ahead.”

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