Set Up a Cryptocurrency Company in Gibraltar
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Investors who wish to open a cryptocurrency company in Gibraltar are subject to a number of conditions.
Gibraltar does not have a specific legal framework that allows for the creation of digital money at this point.
Even so, foreign investors who wish to set up a cryptocurrency company in Gibraltar are welcomed, provided that they observe the rules for these types of businesses, including obtaining a Gibraltar crypto license as needed.
|Cryptocurrency seen as a legal tender (Yes/No)||No|
Local regulatory agency
|The Gibraltar Financial Services Commission|
Special licenses for those who open a cryptocurrency company in Gibraltar
Subject to the Distributed Ledger Technology Providers Regulations 2017 which also includes licenses for certain activities
|Special licenses for those who open a cryptocurrency company in Gibraltar|| |
The DLT Provider license
|Anti-money laundering rules|| |
The cryptocurrency companies are expected to observe the rules for market integrity.
|Special requirements for investors who open a cryptocurrency company in Gibraltar|| |
The investor does not need to have special qualifications.
|Residency requirements for investors|| |
No mandatory residency provisions
|Types of companies used by those who open a cryptocurrency company in Gibraltar|| |
Private and public limited companies
|Minimum capital for a cryptocurency company in Gibraltar|| |
No mandatory prescribed minimum
|Minimum number of shareholders||1 for the private company|
|Minimum number of directors|| |
1 for the private company
|Business license|| |
Issued by the Companies House Gibraltar
|Mandatory requirements for the crypcoturrency company|| |
- observe the DLT regulatory framework for the technology,
- present the business model, business plan and founders, etc.
- have a company secretary as per the general particulars
|Cryptocurrency company taxation|| |
Income derived by DLT providers is taxed as per the usual corporate taxation rules.
The corporate income tax rate in Gibraltar is 12.5%.
|Reasons to open a cryptocurrency company in Gibraltar|| |
- a leading jurisdiction for blockchain companies,
- a legal and regulatory regime that embraces the growth of blockchain technology
- easy company formation in Gibraltar,
- full foreign ownership
Following the success of the online gaming industry, Gibraltar is now preparing for the introduction of new regulations for the use of blockchain technology and cryptocurrency. These also include those applicable to a Gibraltar crypto exchange.
Gibraltar is already one of the most important financial centers in Europe, with financial technology playing an important role in the development of innovative solutions which help the customers of banks and other institutions.
Moreover, we are able to answer questions regarding the equivalent of a Gibraltar crypto license, the distributed ledger technology license, awarded to certain service providers.
The draft legislation related to cryptocurrency in Gibraltar
- the possibility of creating cryptocurrency which can be traded online;
- blockchain which will serve as a database with the digital currencies issued;
- a distribution ledger.
The Gibraltar crypto license
The Distributed Ledger Technology (DLT) licence is awarded after careful consideration by the Financial Services Commission.
Companies that wish to provide services, such as those for trading and storing crypto assets, need to submit an application and undergo a licensing process which, in some cases, can be a complex one.
The DLT regulation was introduced in 2018, however, lawmakers are expected to work on additional financial regulations in the area concerning cryptocurrencies.
A Gibraltar crypto exchange, which would require this license, would need to comply with a set of principles related to:
- business conduct based on honesty and integrity;
- the use of risk management processes;
- corporate governance effectiveness;
- clear communication to clients;
- adequate financial and non-financial resources;
- resiliency and good contingency arrangements;
- security controls meant to combat cybercrime and others.
The principles these companies are subject to have to do with the protection of customers who intend to use, trade, or store (in wallets) cryptocurrencies.
Companies that wish to obtain the DLT license, which can act as a Gibraltar crypto license as it is also awarded for these companies, submit the required documentation to the Financial Services Commission.
The distributed ledger technology license, which is effectively offered as a crypto license and as a license for a Gibraltar crypto exchange, is intended for those companies that use this type of technology, whether in the form of blockchain or otherwise.
Registering a cryptocurrency business in Gibraltar
Our team summarizes the general steps for company formation in Gibraltar:
- Decide the company type: investors can choose to open a private or a public company in Gibraltar;
- Decide the company name and registered address: the name needs to be unique and mindful of prohibited words and a registered office based in Gibraltar is mandatory;
- Prepare the documents: the company incorporation documents for the creation of the crypto company can be prepared with the help of our team;
- Register: the application for registration is accompanied by the filled-in form and the required documents and submitted to the Companies House.
The requirements for company directors and officers are the following:
- A private company can have only one director.
- Each company must have a secretary. For companies with only one director, he or she cannot also be the secretary;
- The public company has at least 2 directors and a company secretary.
A cryptocurrency company can use the virtual office services provided by our team.
The application for the Gibraltar crypto license is submitted after the company is duly registered.
Our Gibraltar company formation agents can assist investors both during the company registration phase and during the license application phase.
Once the company is registered, it must only set up a secure platform through which the transaction can be carried out.
Online shops can set up merchant accounts through which cryptocurrency can be accepted as a payment method.
A company in Gibraltar is subject to the following taxes:
- 12.5% corporate income tax rate;
- 20% corporate income tax for companies that abuse a dominant market position;
- £50 or £216.66 monthly employer contributions for social security purposes.
Gibraltar is a low tax jurisdiction, an important advantage taken into account by investors who open a cryptocurrency company here.