Gibraltar’s government and the GFSC (Gibraltar Financial Services Commission) have announced that in the coming weeks they will develop a draft law that will regulate Initial Coin Offerings (ICOs) in the British overseas territory, as reported by Reuters on February 9th 2018.
The draft law, aiming to regulate the promotion, sale and distribution of digital tokens on the territory of Gibraltar, will be the first ever set of regulations developed specifically for ICOs, the lawmakers claim.
The move comes as Gibraltar has been exploring ways to buttress and expand its financial services industry beyond gaming, particularly in light of the fact that Gibraltar will be exiting the EU along with its parent nation, Great Britain, in 2019.
“One of the key aspects of the token regulations is that we will be introducing the concept of regulating authorized sponsors who will be responsible for assuring compliance with disclosure and financial crime rules,” said Sian Jones, a senior adviser to the GFSC.
Over $3.7 billion was raised through ICOs last year, up from less than 82 million euros in 2016, a leap that has rung alarm bells among central bankers as some firms rush to issue tokens before new rules are introduced.
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