Gibraltar’s Blockchain Legislation Approves Coinfloor Exchange with Official License
Coinfloor Becomes The First Exchange To Be Licensed Under The Gibraltar Legislation
Coinfloor, which happens to be the oldest cryptocurrency exchange company in the United Kingdom has gone on to become the first exchange to be licensed by Gibraltar—the legislation is considered to be very progressive. The rules under this legislation are being viewed as a first for Europe. Additionally, they are being seen as a commitment by British Overseas Territory to continue exploring new, and emerging technological innovations.
The legislation is primarily focused on the provision of quality services as opposed to quantity, which means that Coinfloor has so far been able to prove its worth. A Financial Times reports notes that the only reason why Coinfloor was issued with the licenses was because it had proved itself worthy.
This means that going forward, this exchange will now start to be regulated like a DLT (distributed ledger technology) provider. As was the case with the gambling industry at the start of this century, Gibraltar is seeking to lead the rest in terms of introducing legislation that will be used to the digital currency space as well as blockchain startups.
For many years, the British Overseas Territory has proven to be one of the most attractive locations for virtual casinos. The main reason behind this logic being that the territory normally demands very low taxes from firms that operate in its space. Earlier this year, the territory introduced certain rules that were primarily targeting the blockchain industry.
With the introduction of these rules, the territory is hoping that it will be able to achieve the same level of success in this sector as it did with the gambling industry. This new rules are primarily targeting innovations in the FinTech (financial and technological innovations) industry. According to industry insiders, this type of legislation is a first for the European market.
But this does not mean that the other countries have been left far off behind. For instance, Malta has for some time now been working on a similar kind of attractive legislation. Its sole aim is to lure blockchain and FinTech startups to the island.
There are those who are strongly convinced that Malta will soon prove to be the most ideal location for blockchain companies. Those behind this school of thought believe that the reason this will be a possibility is because there is a lot of uncertainty on how the Gibraltar legislation will be affected by Britain’s decision to leave the EU starting spring of the coming year.
According to Obi Nwosu, who is Coinfloor’s CEO, before being given the license by the British Overseas Territory, they underwent a series of tests, all of which were based on nine main principles.
He went on to tell the Financial Times that the primary aim of these tests was to ensure that the firms that were licensed under this legislation had put in place sufficient know your customer (KYC) and AML (anti-money laundering) measures. The exchanges were also required to prove that their security was robust enough to withstand all kinds of cyber security threats.