Govt prepares ground for cryptocurrency business

The Gibraltar Government will shortly publish a consultation paper and proposed regulatory framework with regards to establishing a cryptocurrency business.
In January 2016, the Government published for consultation a document titled, ‘Virtual Currency: Outline Regulatory Framework’ the second such paper on this subject produced by the Cryptocurrency Working Group.
After considering the feedback received from private sector firms and many other interested parties, further detailed work continued on this project including engaging with the Gibraltar Financial Services Commission (GFSC).
The consultation process indicated a strong preference from firms for the GFSC to be the regulator for these proposed activities.
At the invitation of Minister for Commerce, Albert Isola, the GFSC, working with Gibraltar Finance, have created a further document containing ‘Proposals for Distributed Ledger Technology Framework’.
The GFSC proposes a regulatory framework for firms engaging in activities not otherwise subject to regulation and that use DLT for the transmission or storage of value belonging to others.
Release of the document for a full public consultation will take place on the May 9, 2017 at the Digital Currency Summit which will be held at the University of Gibraltar.
Mr Isola commented: “We have worked hard in thoroughly researching the opportunities that could accrue to Gibraltar by creating an environment that would attract and nurture firms that operate in this space.”
“We are also mindful of the risks that any new business line may bring and I feel that we have struck a great balance between the two. I look forward to publishing the document in May seeking at that time considered opinions from a wide range of sources which, as always, will be very welcome.”
Samantha Barrass added: “Together with HM Government of Gibraltar the GFSC is very much looking forward to opening the DLT regulatory framework consultation. We actively encourage innovation by supporting those businesses looking to develop and introduce innovative ideas into the market.
“The proposed framework will facilitate a progressive, well-regulated and safe environment for firms using DLT to grow, whilst also ensuring that this new regulatory environment protects both consumers and the good reputation of the jurisdiction. We look forward to receiving feedback on this exciting project.”
Gibraltar Finance together with the GFSC intends on hosting a clinic on during the morning of Wednesday May 10, and will advise of the venue in due course. This will provide interested parties with the opportunity to engage, ask questions and generally discuss the contents of the consultation paper and the proposed regulatory framework.
For further information on the above, please contact, in the first instance, either of the following:
Nicholas Gomez ngomez@fsc.gi or Paul Astengo paul.astengo@financecentre.gov.gi