Gibraltar has adopted a bill designed to protect customers of cryptocurrency businesses and its own reputation, went into effect on January 1. The regulation targets blockchain technology – companies storing and transmitting value must now be licensed by the Financial Services Commission (GFSC).
The Digital Ledger Technology (DLT) Regulatory Framework has been introduced after last month the Legislature of Gibraltar approved a bill designed to update its financial services regulations. It laid down the foundation for new legislation governing the cryptocurrency sector in the territory with financial services and online gambling still considered the major pillars of the economy.
The new Regulatory Framework designed to protect rights and interests consumers. Every DLT provider should communicate with its customers in a way which is fair, clear and not misleading and have proper regard to risks to its business and customers. Companies must also have effective arrangements in place for the protection of client assets and money, including contingency, disaster recovery and crisis management plans.