The financial services commission of Gibraltar (GFSC) has released an official statement regarding the regulation of the ICO (Initial Corner Offering). This announcement indicates that Gibraltar will incorporate regulations “complementary” to the ICO in its new regulatory framework for the technologies of the “records distributed” (DLT), which should enter into force in January 2018.
The statements of the GFSC concerning the ICO is encouraging. The commission envisages a regulatory framework that is complementary, covering the promotion and sale of crypto-currencies, equated to that of the DLT. “
The GFSC wants to facilitate the entry of investors, but emits some warnings
Currently, the GFSC defines the ICO as ” a means not regulated to increase the funding of a company or a project. “. The GFSC constantly highlights the nature of non-regulated environment that surrounds the ICO, stating that the ICO are often used by startups to bypass the rigorous process and regulated the increase in capital requested by the financial institutions.
The GFSC indicated that it will seek to regulate the issuance of securities through the ICO, stating that when the crypto-currencies represent securities, their promotion and sale are regulated as such. “The institution of financial regulation in Gibraltar has also warned investors of the risks associated with the ICO, stating that” this type of funding is highly speculative and risky “, adding that the experienced investors are often better placed to finance startups. This is a point that the government shares with the european central Bank.
The government is not his first test shot
The government of Gibraltar has already started to take steps significant to the establishment of a permissive legislation around crypto-currencies since 2016. Subsequently, in may 2017, the government of Gibraltar has published a document outlining a number of proposals for the development of a regulatory framework for the DLT. Since then, Gibraltar has attracted many firms specializing in crypto-currencies such as Xapo and Coinsilium. Also, last month, the stock Exchange of Gibraltar announced its intention to integrate technology into the blockchain in all its operational processes.