RE: Valereum great buy17 Feb 2022 18:25
Good article in comply advantage below today.
Gibraltar
Cryptocurrencies: Not considered legal tender
Cryptocurrency exchanges: Legal, must register with the GFSC
Gibraltar is a global leader in cryptocurrency regulation. Cryptocurrency is not considered legal tender in the country but cryptocurrency exchanges are legal and operate within a well-defined regulatory framework. Gibraltar has a reputation as a low taxation environment: it does not impose capital gains or dividend tax on cryptocurrencies, and crypto exchanges are subject to a business-friendly 12.5% corporate income tax rate.
Exchanges
In 2018, Gibraltar introduced its Digital Ledger Technology (DLT) Regulatory Framework after extensive engagement with the crypto industry. Under the framework, exchanges must register with the Gibraltar Financial Services Commission (GFSC) and demonstrate that they are meeting the “principles” of the DLT framework which include a strong focus on the detection and disclosure of money laundering and terrorist financing. In September 2020, Gibraltar updated its DLT framework regulations to better align with FATF recommendations, taking into account the higher risk factors associated with some virtual asset instruments.
Future Regulations
Gibraltar’s government is seeking to strengthen its position as a global leader by exploring further cryptocurrency regulation. In 2017, the GFSC issued a statement on the unregulated use of ICOs and suggested it will monitor their ongoing use within the DLT Framework. Similarly, the commission’s Innovate and Create Team has been established to help businesses innovate new products for the crypto-economy. In 2021, Gibraltar convened a Market Integrity working group to further define appropriate market standards for cryptocurrency exchanges in coordination with standards set by other jurisdictions such as the UK and the EU.
The government’s attitude to cryptocurrency is attracting interest from investors seeking to take advantage of Gibraltar’s progressive regulatory environment. In 2022, blockchain firm Valereum announced plans to set up a cryptocurrency stock exchange in the territory, and bought a 90% stake in the Gibraltar Stock Exchange. If sanctioned by the Gibraltar Financial Services Commission, the move would pave the way for a fully-regulated exchange dealing in both fiat and digital currencies.
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