The Firm established a dedicated DLT Department in 2017 which provides legal and regulatory advice and services to the Blockchain/Distributed Ledger Technology/Fintech/Initial Coin Offering Industry.
Gibraltar became one of the first jurisdictions in the world to regulate distributed ledger technology (“DLT”) providers. Under legislation effective 1 January 2018 (“DLT Regulatory Framework”) any firm carrying out by way of business, in for from within Gibraltar, the use us DLT for storing value belonging to others, will need to be licensed by the Gibraltar Financial Services Commission (“GFSC”). The DLT Regulatory Framework was designed to provide an efficient, safe and innovative regulatory framework which is principles based.
In addition to the DLT Regulatory Framework, Gibraltar has announced its intention to regulate initial coin offerings/token launches which we refer to as Initial Token Offerings (“ITOs”). It is expected that, during the course of 2018, Gibraltar will introduce a complementary regulatory framework covering the promotion, sale and distribution of digital tokens and secondary market activities (“ITO Regulatory Framework”). GFSC has announced that the ITO Regulatory Framework will be aligned with the DLT Regulatory Framework. It is therefore expected that the ITO Regulatory Framework will be principles based and that the regulatory principles that apply to all DLT Providers will be adapted to cater for ITOs.
The Firm is seeing an immense interest in both DLT Provider licence applications and ITOs from the cryptocurrency sector. The Firm has an appetite for accepting instructions only from entities and professional colleagues who demonstrate a keen desire to provide DLT services or conduct ITOs to very high standards.