Today, the Gibraltar Financial Services Commission (GFSC) announced that the Government of Gibraltar (HMGoG) and GFSC are jointly developing legislation for blockchain-based token offerings.
Following the GFSC’s Statement on ICOs in September 2017, Gibraltar’s Minister for Commerce, Hon. Albert Isola MP, announced that Government’s position on ICOs would be formulated by this month.
In December, HMGoG collected views of local stakeholders through a discussion paper on token regulation circulated to Gibraltar’s Finance Centre Council. Based on stakeholders’ feedback, work has now begun on drafting legislation to regulate the promotion, sale and distribution of tokens; secondary market activities relating to tokens; and the provision.
The regulations will mandate ICO issuers to follow disclosure rules that include ‘adequate accurate and balanced disclosure of information’ to all prospective token buyers. Also, the regulations will establish mechanisms to prevent financial fraud.
GFSC senior advisor on distributed ledger technology (DLT) Siân Jones stated that one of the key aspects of the token regulations is the introducing of the concept of regulating authorised sponsors.
A bill is expected to be considered by Parliament in the second quarter of 2018. If passed Gibraltar will be an attractive destination for businesses weighing up token sales in the coming months and cryptocurrency investment funds in the future.