Gibraltar Cryptocurrency Laws Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
Gibraltar has actively legislated to regulate the operation of cryptocurrencies within its jurisdiction. It currently requires the registration of firms that use distributed ledger technology to store or transmit value belonging to others. The registration process involves the Gibraltar Financial Services Commission reviewing the application and, if satisfied that certain criteria are met, a license may be granted, enabling the holder to operate a business using distributed ledger technology. In 2017, the Gibraltar Stock Exchange (GSE) announced its plan to “fully integrate” the use of blockchain into its operational processes.
Digital Currency – Blockchains
Gibraltar, known as one of the most cryptocurrency-friendly jurisdictions, will adopt new policies in the coming months to counter the manipulation of the digital asset market (true as of Feb. 24, 2021). It will also implement FATF recommendations for the whole financial sector. The updates provide clarity on token emission and include a risk management solution that will oblige cryptocurrency companies to collect and verify customer information.
P.S. Insights on Cryptocurrency Legal Issues
Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.
Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.
However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.
Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency. The globe below provides links to country-by-country summaries: