The cryptocurrency exchange has been granted a full license as a provider of Distributed Ledger Technology from the country’s financial services regulator.
A Regulated Platform
The Gibraltar Blockchain Exchange (GBX) which is a subsidiary of the Gibraltar Stock Exchange Group (GSX Group) has announced that it has been granted a full license as a provider of Distributed Ledger Technology (DLT) by Gibraltar Financial Services Commission (GFSC).
The license has been granted under Gibraltar’s Financial Services Regulations 2018 DLT framework. GBX is an institutional-grade cryptocurrency exchange and token sale platform. This makes GSX the first stock exchange in the world to own a regulated cryptocurrency exchange.
The DLT Regulations
Gibraltar became the first country to launch regulations around DLT in January this year. The framework is helping the nation emerge as a leading blockchain destination.
Nick Cowan, CEO of the Gibraltar Blockchain Exchange, said:
Securing authorization as a DLT provider here in Gibraltar is affirmation of our tireless efforts to position the GBX among the premiere Digital Asset Exchanges globally. Today’s announcement renews our ambition to create a world leading, institutional-grade token sale platform and Digital Asset Exchange. We’re incredibly excited to build on this wave of momentum following our full-scale public launch in July.
GBX launched its platform earlier in July 2018. The exchange offers fiat onboarding (USD) for its customers and plans to add more fiat onboarding option in future. Other than USD pairs, the platform currently offers BTC and ETH pairs.
According to Cowan:
This license means a great deal to the entire GBX community, not least our users. From the very beginning we have sought to build a platform defined by stringent regulatory safeguards and effective risk-based controls, while promoting the sensible and sustainable development of the industry. Today’s aauthorizationis an endorsement of this long held position and evidence of the hard work put in up to this point.
Details of the Application Process
The firm as part of the initial application assessment started its deliberations with GFSC to determine the applicability of the regulatory framework to its proposed business.
It was followed by due diligence and evaluation by the regulator. GBX was required to make an in-person presentation on the proposed business plan and how the company intended to comply with the nine regulatory principles.
The application process reportedly takes close to six months. GBX was granted the license in category 3, the highest level awarded within the DLT framework.
Cowan concluded:
Gibraltar has found the right blend of sensible and supportive regulation, which has helped position the jurisdiction as a lodestar for the global cryptocurrency space, while allowing blockchain companies to flourish. Gibraltar’s emergence as a leading crypto hub hasn’t happened as a result of rushed regulatory action, but rather a methodical, considered approach. Crucially, here in Gibraltar there has been a realisation that the pursuit of innovation should never come at the expense of sustainability and long-term development. I look forward to seeing this trend continue in the months and years ahead.
Do you think Gibraltar will become a significant blockchain hub in the coming years? Let us know in the comments below.
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