The GFSC [Gibraltar Financial Services Commission] has recently updated its regulatory framework for governing the operation of DLT [Distributed Ledger Technology] providers to incorporate the newest FATF [Financial Action Task Force] rules.
The GFSC added that this is often in response to blockchain’s fast-moving nature, especially as the agency seeks to support firms while ensuring users’ safety.
The updated guidance incorporates the newest FATF recommendations around VASP [Virtual Asset Service Providers] and therefore the ‘Travel Rule,’ which needs VASPs to gather and transfer user information in transactions. GFSC recommends considering “virtual assets as ‘property,’ ‘proceeds,’ ‘funds,’ ‘funds or other assets,’ or other ‘corresponding value.’”
As per the new GFSC’s guidance, VASPs are required to capture and maintain “robust & accurate records of transactions.” Firms must also update potential investors along with the customers on risks around virtual assets and need additional factors or onboarding tests.
Albert Isola – Gibraltar Minister for Digital and Financial Services added that the updated guidance brings the territory closer to meeting evolving international regulations:
“The release of the updated Guidance Notes is another important breakthrough within the development of the DLT Providers Regulatory framework that has proved so successful so far. It’s also a big milestone within the evolution of our regulations as we start the road to realize ongoing FATF compliance. My thanks to all parties involved in the delivery of these updates.”
The consultation process began earlier in November, last year and included the GFSC, the Gibraltar Association for New Technologies, along with the DLT provider licensees.
In line with the GFSC, the number of licensed DLT firms within the territory has reached 13 firms, along with eToro, Huobi, Xapo, LMAX, Bitso, & Gnosis.
Gibraltar has been hailed as a pacesetter within the cryptocurrency industry for its openness & regulatory advances around crypto-assets. It’s even been called the next cryptocurrency hotspot.