The Government of Gibraltar regulates ICO

The Government of Gibraltar regulates ICO

The first such global initiative, the government of Gibraltar, is currently drafting a law regulating the work of ICOs and secondary cryptocurrency markets.

The initiative has been announced since September last year, when the Financial Services Commission in Gibraltar (GFSC) stated that a legislative structure is needed to ensure “Publishing relevant information on start-ups wishing to raise funds for activities associated with the promotion and sale of tokens.

The law package will also cover secondary actors in the crypto market, such as exchange services and investment funds that fund ICO.

According to the statements of the Minister of Commerce, Albert Isola, the package of laws seeks to protect consumers and protect companies that want to sell tokens in Gibraltar.

The regulations will ensure “adequate and balanced disclosure of relevant information” to all interested buyers, as well as the establishment of mechanisms to prevent financial crime.

One of the GFSC counselors said that: “We will introduce the concept of authorized sponsors whose responsibility will be to ensure compliance with the legislation on consumer information and the prevention of financial crime.

This package of laws is expected to reach Parliament in the 2nd quarter of 2018. If approved, Gibraltar will become the first country to legislate on ICO and token sales, which will make it a very attractive destination for crypto businessmen. It will also facilitate companies’ access to the classic banking system and will establish their legitimacy in the eyes of the public.

Payment processing operations based on blockchain technology were legalized in Gibraltar in December 2017, and since January a national registry for DLT companies has been set up as well as a licensing system for them.

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