Gilbraltar Approves 2nd Distributed Ledger Technology License to Covesting Exchange
Covesting, a cryptocurrency exchange and trading platform that lets its users sell and buy digital assets like cryptocurrencies and monitor their trades, will be operating in Gibraltar soon. The company has announced today, October 19, that it was awarded a license to use the distributed ledger technology (blockchain) in the Gibraltar island.
The license was given by the Gibraltar Financial Services Commission (GFSC), so now the exchange will be fully compliant with the laws of the country and authorized to store and transmit value.
Hon Albert Isola, the Minister of Commerce of Gibraltar, has affirmed at the occasion that new technologies like the blockchain will be vital for the future of innovation and that he believes that the sector will have a strong growth in the country.
According to the minister, the main goal of the government is to develop this area better in an effort to create an environment that will develop itself without needing the help from the government, so giving this initial push and create a robust legislation for the blockchain technology and digital assets is an important first step that has to be made.
The Covesting team has appreciated receiving the license and has promised a high level of security and quality for the users, which is to be expected since the reputation of this exchange precedes it and it was one of the first to actually pass the tests and receive a full license to act in the country.
Gibraltar’s License Was Introduced In January
It can be affirmed that Gibraltar certainly has an advanced legislation for the blockchain technology. The country has started its program back in January and has added a lot of companies since then. Just last week our blog reported on the matter as Coinfloor received a license under the Gibraltar legislation.
This made Coinfloor be the first crypto exchange that was licensed in the country. Coinfloor is also the oldest exchange in the United Kingdom and this was an important step for the country, which, together with Malta, has one of the most progressive legislation on cryptocurrencies in Europe.
Gibraltar’s framework was created to let the blockchain and crypto companies in the country interact with clients and other companies in the nation with backing from the government and flexibility to develop the sector.
As the companies are subject to regulation and to risk assessment, the clients can be more at ease when dealing with these companies because they know that they have been tested before being enabled to enter the market, which is both very good for the clients and for the companies.
With a robust framework, Gibraltar’s government is interested in having the same success that it had in legalizing gambling in the past, which was a very profitable move.
Malta, the so-called Blockchain Island, is actually just as prepared as Gibraltar to deal with the market, making these two places some of the best to invest in cryptos in Europe. While Gibraltar has Coinfloor and now Covesting, Malta has Binance and OKEx, two of the largest exchanges by trading volume, officially in the country.