Gibraltar sets world-first with new blockchain laws

Gibraltar this month became the first jurisdiction in the world to introduce a regulatory framework for companies involved with blockchain technology.

In December, a 17-member local parliament passed a bill that requires all firms using DLT, also known as blockchain, to store or transmit value belonging to others in the country to acquire a licence from the Gibraltar Financial Services Commission (GFSC).

The DLT Regulatory Framework came into effect on January 1 and establishes the GFSC as the body that will oversee the regulation of DLT in Gibraltar.

In a statement, the GFSC said its primary objective is to protect consumers and the reputation of Gibraltar, “when considering any licence application and in its supervision and enforcement functions”.

The GFSC also said that the DLT Regulatory Framework meets its regulatory and strategic objectives, as laid out in the nine regulatory principles designed for DLT applications.

Nicky Gomez, head of risk and innovation at the GFSC, added: “We are really excited to finally welcome applications from DLT providers; the team expects to be very busy in the coming months, and are looking forward to working on some interesting and innovative ideas with applicants.

“Working closely and collaboratively with the financial services industry and the Government of Gibraltar has resulted in the GFSC becoming the first regulator to introduce a DLT Regulatory Framework.

“It is a very encouraging time and we are also looking forward to the challenge.”

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