Government of Gibraltar’s financial services regulator announced that it will release proposals for a regulatory framework for firms that are engaging in blockchain activities.

HM Government of Gibraltar had published a paper for consultation titled, ‘Virtual Currency: Outline Regulatory Framework’ in early 2016. The cryptocurrency working group has produced second such paper on this subject, after due consideration of feedbacks from private sector firms and many other interested parties.

Also, further detailed work continued in the project including engaging with the Gibraltar Financial Services Commission (GFSC) and the consultation process mentioned a strong preference from companies for the GFSC to be the Regulator for these proposed activities.

Now, GFSC is working with Gibraltar Finance and has created a further document containing ‘Proposals for Distributed Ledger Technology Framework’. It proposes a regulatory framework for blockchain firms and the document release for a full public consultation will take place on the 9th May 2017 during the Digital Currency Summit to be held at the University of Gibraltar.

“We have worked hard in thoroughly researching the opportunities that could accrue to Gibraltar by creating an environment that would attract and nurture firms that operate in this space. We are also mindful of the risks that any new business line may bring and I feel that we have struck a great balance between the two. I look forward to publishing the document in May seeking at that time considered opinions from a wide range of sources which, as always, will be very welcome,” Minister Isola stated.

Gibraltar Finance and GFSC are aiming to host a clinic on May 10 that will offer interested parties with the opportunity to engage, ask questions and generally discuss the contents of the consultation paper and the proposed regulatory framework.

“Together with HM Government of Gibraltar the GFSC is very much looking forward to opening the DLT regulatory framework consultation. We actively encourage innovation by supporting those businesses looking to develop and introduce innovative ideas into the market,” Samantha Barrass, CEO of GFSC, said. “The proposed framework will facilitate a progressive, well-regulated and safe environment for firms using DLT to grow, whilst also ensuring that this new regulatory environment protects both consumers and the good reputation of the jurisdiction. We look forward to receiving feedback on this exciting project.”