Gibraltar Created the First Distributed Ledger Technology Law
Fintech is no longer an emerging industry, as it found its way in many sectors of the economy. One of the most important branches of the fintech industry was cryptocurrency, however these are also part of daily activities of some companies which is why some countries are considering regulating the use of cryptocurrencies. The first jurisdiction to actually regulate it is Gibraltar, which is the first territory in the world to create a Distributed Ledger Technology (DLT) law. Our company formation agents in Gibraltar can assist foreign investors who want to set up fintech businesses in the Rock.
The new Gibraltar DLT regulatory framework was announced in October
Companies in the financial sector are familiar with the fact that the creation and use of cryptocurrencies is not possible without blockchain technology. Also, blockchain cannot exist without a distributed ledger, which is why the Gibraltar government and the Financial Services Commission (FSC) have announced the creation of a DLT legislation at the middle of October.
The new law would help cryptocurrency companies in Gibraltar to operate in a well-regulated manner and in a secure environment. It will also encourage more foreign investments in the financial industry.
Our company registration consultants in Gibraltar can advise on the existing financial legislation.
The new law will be issued in January 2018
The work on the legislation related to cryptocurrency has started in 2014 and involved a lot of research, however it has now taken the form desired by the authorities.
The DLT regulations were included in the Financial Services Act and will take effect starting with January 2018. It will apply to existing financial firms seeking to expand their activities, and to new companies interested in engaging in the creation of blockchain technology.
According to the minister for commerce, Albert Isola, the new legislation was positively acknowledged by the international financial community. Now, Gibraltar has become of the most advanced economies in terms of innovation.
Foreign investors who want to open companies in the financial field in Gibraltar are invited to contact our local company formation advisors for assistance.