Gibraltar Stock Exchange Finally Gets License For Blockchain Subsidiary By The GFSC
Gibraltar Stock Exchange Finally Gets License For Blockchain Subsidiary
The Gibraltar Stock Exchange has recently been approved by the financial regulator of the island to create its own blockchain subsidiary in the country. The company has announced yesterday, November 22, that the Gibraltar Financial Services Commission (GFSC) has granted it the license to work under the jurisdiction of the blockchain technology.
In the island of Gibraltar, any exchange needs to be regulated within the laws and the framework for the distributed ledger technology if they want to open a cryptocurrency exchange or any kind of a similar business in the region.
The Gibraltar Blockchain Exchange (GBX) will be the first stock exchange to own a fully regulated crypto exchange, according to its own claims. The company was first launched in July but it still lacked the support of the financial authorities of the country to operate.
It was launched as an institutional token sale platform that also worked as a digital asset exchange. At the moment, the company offers many crypto trading pairs that are paired against USD. There is still a list of new tokens that are planned for the future of the exchange, but at the time of this report, the exchange did not yet reveal which were these assets of when they would be released.
The company has created an official statement saying that it had acquired with the GSC a Category 3 license. This is the highest category that a company can receive to deal with the blockchain (DLT) technology in the regulatory framework of the island, which pretty much guarantees that the exchange will be able to become of the greatest marketplaces of the island.
Nick Cowan, the CEO of the Gibraltar Blockchain Exchange, has commented on the launch. He has affirmed that Gibraltar is a place that has found the exact right blend of sensible and supportive regulation that allows blockchain companies to flourish in the country.
This is true. The island of Gibraltar, together with Malta, has a very pro-crypto legislation, which is far more progressive than the legislation that many countries in Europe have at the moment. In a context in which a lot of countries like India and China are even banning cryptos or are on the verge of doing it, it is important that places like this exist.
The DLT framework was first announced by the regulators of the island in January this year. While a very progressive framework, it was also very strict, as it is in most countries. The regulatory framework mandated that firms needed a special license to store or transmit value belong to others via the blockchain technology, which is why the GBX needed the license before it could operate normally in the country.
Most of the plans for the framework were released in December 2017 and it only took a month until they were approved, which proves just how much Gibraltar is pro crypto.
In March, the government of Gibraltar had also indicated that it was planning to regulate Initial Coin Offerings (ICOs) and that most of its tokens would not be considered securities according to the national law. This was a stark contrast with the U. S. law, which determined that most ICOs were, in fact, securities.