Distributed Ledger Bill Approved By Gibraltar Parliamentbr>
The Gibraltar Parliament has approved a bill that advances the island’s effort to introduce a distributed ledger technology (DLT) framework, which will come into effect next year.
In October, Minister of Commerce Albert Isola presented the bill in an effort to place the island at the forefront of regulation in a burgeoning technology-driven sector of the global financial services industry. The bill has been designed to provide “an efficient, safe and innovative regulatory framework” for firms engaging in activities not otherwise subject to regulation and that use DLT for the transmission or storage of value belonging to others.
After receiving the draft legislation, HM Government of Gibraltar published the Financial Services (Distributed Ledger Technology Providers) Regulations 2017 together with a bill for an Act to amend the Financial Services (Investment and Fiduciary Services) Act. On December 6, the Parliament unanimously passed the bill.
Isola said Gibraltar is one of the first jurisdictions in the world to introduce a regulatory framework for DLT businesses, thereby providing the regulatory certainty required by quality firms that they aim to attract to Gibraltar.
“I am aware that there are a number of businesses waiting to file their applications with the Gibraltar Financial Services Commission on 1st January 2018 and this is excellent news,” said Isola. “This is an exciting time for our community. We are being recognized globally for the leadership and innovation we are showing. At the heart of our proposals is the protection of investors and the hard-won reputation that Gibraltar enjoys. I will not tire in restating this. We have undertaken a significant amount of detailed consultation publicly and privately over a three-year period to arrive at where we are today. My view remains that this represents a tremendous opportunity for long-term sustainable growth in our economy in a new and exciting area. We will seek to develop excellent long-term relationships with operators of the highest quality and integrity.”