The Gibraltar Financial Services Commission (GFSC) plans to create a new license for startups that work with blockchain.
According to Reuters, the license would apply to companies that transmit money or assets using blockchain or distributed ledger technology. However, said the GFSC risk and innovation chief, Nicky Gomez, companies expect governments to regulate the use of blockchain.
Gómez told the publication:
“This is the first instance of a legislative framework specially designed for companies that use blockchain or distributed ledger technology.”
On Friday, Gibraltar will continue to publish its guidance on how to apply a new law passed last week that amends its Financial Services Act (Investment and Trust Services) to legally define how blockchains can be used to store and transmit data.
As reported by CoinDesk, the next steps would be to approve a law specifically aimed at DLT platforms, as well as another possible bill that regulates the initial offers of currencies.
The main adviser to the government of Gibraltar on DLT, Sian Jones, told Reuters that the new regulations will allow companies to gain bank accounts more easily and establish their legitimacy with potential clients.
Under the framework, startups will be required to have some capital, although the exact amount will be determined on a case-by-case basis. They will also be required to comply with regulations against money laundering and terrorist financing, the news source reports.
“We’ve been talking to law firms and advisors to help companies establish here,” Jones said.