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Gibraltar to Launch License Scheme for Blockchain Startups

Gibraltar to Launch License Scheme for Blockchain Startups

Gibraltar to Launch License Scheme for Blockchain Startups

Gibraltar will publish guidance explaining how to apply its new blockchain legislation to startups on Friday.

Gibraltar will publish guidance explaining how to apply its new blockchain legislation to startups on Friday.

Gibraltar will publish guidance explaining how to apply its new blockchain legislation to startups on Friday.

AccessTimeIconDec 14, 2017, 4:05 PM
Updated Aug 18, 2021, 7:43 PM

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The Gibraltar Financial Services Commission (GFSC) plans to create a new a license for startups working with blockchain.

According to Reuters, the license would apply to firms transmitting money or assets using blockchain or distributed ledger technology. However, said GFSC head of risk and innovation Nicky Gomez, companies are looking to governments to regulate blockchain usage.

Gomez told the publication:

"This is the first instance of a purpose-built legislative framework for businesses that use blockchain or distributed ledger technology."

On Friday, Gibraltar will follow through by publishing its guidance on how to apply a new law passed last week that amends its Financial Services (Investment and Fiduciary Services) Act to legally define how blockchains can be used for storing and transmitting data.

As CoinDesk has reported, the next steps would be to pass a bill specifically aimed at DLT platforms, as well as another potential bill regulating initial coin offerings.

The Gibraltar government's senior advisor on DLT, Sian Jones, told Reuters that the new regulations will allow businesses to more easily gain bank accounts and establish their legitimacy with potential customers.

Under the framework, startups will be required to hold some capital, though the exact amount will be determined on a case-by-case basis. They will also be required to follow anti-money laundering and terrorist financing regulations, the news source reports.

"We have been talking with law firms and advisors helping companies to get established here," Jones said.

Gibraltar image via Shutterstock

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