Gibraltar has been very forward-thinking in their regulations for cryptocurrencies and blockchain. They were actually the only ones in Europe to predict the massive popularity of cryptos and were able to prepare for their explosion. When the rest of the EU was left scrambling for ideas about regulations and taxes concerning blockchain, Gibraltar was already firm on its feet in regards to having some guidelines.
Today those very same guidelines are coming into effect as Coinfloor, which is the very first cryptocurrency exchange in the UK, will be receiving a formal blockchain license (a first of its kind) in Gibraltar. The license was just a formal way of introducing the guidelines that Gibraltar is now featuring, they want to popularise it and make the EU use them as sort of a pattern. The licencing of Coinfloor has been in the works for a long time now. What wasn’t known to the company were the exact features of the license, by which they were actually surprised. Even the CEO Obi Nwosu mentioned how well it helped them focus on quality over quantity.
The Gibraltar law
Gibraltar has already initiated it’s new laws about these kinds of companies. The fact that they are very easy to follow is what makes Gibraltar such a popular place for crypto and blockchain related companies to go to. There are essentially nine regulatory principals, that the companies need to adhere to. However, the most important features are the laws about
- Honesty and Integrity (which will help the companies be a lot more transparent with the government and the people)
- Good Communication and PR (this is also a law that guarantees that customers will receive what they paid for)
- Preventing scams and fraud through protocols (protocols that will help the company stay in business)
The reason why Gibraltar quickly jumped on the bandwagon and started implementing all these new laws, was because they needed to attract as many good and qualified companies as they could. The blockchain industry has been nothing but a blessing for the countries who have started to house them and Gibraltar wanted a piece of it. Unfortunately, however, every innovation comes with a consequence and a place like Gibraltar is no exception. After the new laws, they were cut off from the Royal Bank of Scotland with reasons still to be found out.
Gibraltar also saw what a terrible trend the fundraising campaigns were becoming and how much money was funneled into them every year. Billions of dollars just simply disappearing into scams, without any kind of regulations to stop them, Therefore they proposed some laws in order to stop these fundraising by limiting them to Initial Coin Offering, which is a lot easier to screen and a lot easier to monitor after completion.
Coinfloor is definitely not the last company to turn to Gibraltar, many off-shore companies are looking at them quite positively as well.