The Gibraltar Blockchain Exchange (GBX), a cryptocurrency exchange and marketplace for initial coin offerings, has been granted a full license from the Gibraltar Financial Services Commission.
The license is a Distributed Ledger Technology Licence, a certification which was made active in January 2018. Being licensed in Gibraltar means obeying the territory’s nine regulatory commandments, which can be read here.
Reportedly, the business was required to deliver a presentation, in person, to adjudicators at the watchdog. It was required to outline a business plan and prove that it would obey the aforementioned regulatory principles.
According to the press release, this development makes the Gibraltar Stock Exchange the first national stock exchange to own a regulated cryptocurrency exchange.
Going Past the Great Wall: Things to Consider When Entering the Asian MarketGo to article >>
“This licence 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,” said Nick Cowan, GBX CEO.
Cryptocurrency on the Rock
The GBX was launched by the Gibraltar Stock Exchange in February with an ICO, through which it raised $27 million. Startups that wish to launch their own ICOs on its platform are examined according to guidelines published in March. These include having an ‘authorized sponsor’ whose purpose is to oversee the required ‘codes of practice.’
The first project to be accepted (in October) was Coinfloor, a cryptocurrency exchange that was established in London in 2013. Joining the fold shortly afterward were Covesting, a cryptocurrency comparison service, and CrowdVilla, which sells blockchain-based timeshares. According to the GBX website, it has hosted seven projects, with one to begin shortly.
The GBX currency exchange went live in July with six cryptocurrencies on offer – Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ethereum Classic, and Rock Token – and it traded $9.3 million worth of cryptocurrency transactions over the last 24 hours, according to coinmarketcap.com. The exchange also accepts US dollars and intends to add more fiat currencies in due course.
When it enacted the DLT license framework, Gibraltar became the first jurisdiction in the world to off cryptocurrency-based businesses the opportunity to operate completely legally. Malta followed suit on the 1st of November.