ICO / Token Sale Regulations in Gibraltar

ICO / Token Sale Regulations in Gibraltar

ICOs / Token sales in GibraltarIn January 2018, Gibraltar surged way ahead of other jurisdictions in the race to become the crypto capital of Europe with the enactment of its ground-breaking DLT Regulations.

The government swiftly followed up on this initiative in February when it also announced As the weeks rolled on further details of these pending regulations were teased, most notably at the Gibraltar International FinTech Forum, stunning delegates from all over the world.

Full details were released in March, when Gibraltar Finance unveiled the official Token Regulation Policy Document. Media pundits and investors alike, who had been watching Gibraltar’s burgeoning FinTech industry closely, now finally had something substantial to chew on. For those who know the jurisdiction well, however, the document didn’t offer too many surprises.

In September 2017 a Gibraltar Finance statement on Initial Coin Offerings declared that ICOs “are often used by start-ups to bypass the rigorous and regulated capital-raising process required by venture capitalists or financial institutions”, that they “are highly-speculative and risky” and “often best undertaken by experienced investors who are familiar with assessing the nature of a project and its business plan”.

In retrospect, of course, it’s apparent that Gibraltar was already reviewing these shortcomings and actively looking for methods to address them.

Both the Token Regulations Policy Document and the existing the DLT Regulations stress the importance of protecting investors, as well as Gibraltar’s flawless reputation as a leading financial centre. This stance, of course, has been the central focus of all of Gibraltar’s regulated industries, most notably finance, insurance and gaming.

The Gibraltar government has already been inundated with DLT operator licence applications and, once the ICO regulations are enacted later this year, interest in Gibraltar will only intensify.

Of course not all applications will be granted. Once again the clues can be found in Gibraltar’s core regulated industries – finance, insurance and gaming – where only the most successful, top-tier companies are granted licences.

At the time of writing, these ICO Regulations have yet to come into effect though much can still be done in preparation. In addition to the official Token Regulation Policy Document itself, our associated company, Hassans International Law Firm, has a brief article on ICO Regulations in Gibraltar which serves as a perfect primer.

And, of course, if you have any specific questions please do get in touch with us and take advantage of our expertise in this field.

Interested in applying for a DLT Licence or conduct an ICO in Gibraltar? Heard about Gibraltar’s blockchain-friendly banking services and curious to learn more? Or perhaps you want advice on how to integrate crypto safely into your investment portfolio?

We have the answers to all these questions and more. So jump ahead of the pack and talk to the professionals – contact Line Group today.