Gibraltar to Draft Legislation on Issuance of Initial Coin Offerings

Country Will Be World's First to Issue Regulations on Initial Coin Offerings


How about a quick geography lesson? OK, where is Gibraltar? Answer; at the very center of the ICO world. Yup, Gibraltar’s government and the Gibraltar Financial Services Commission (GFSC) will be drafting legislation to fully regulate the sale, distribution and promotion of tokens connected with the British territory. With almost every country on the globe struggling to not only understand but also regulate cryptocurrencies (China….ban them, U.S……..duh, what is a token?), Gibraltar just went ahead and solved all the problems. We at FintekNews know all about Gibraltar since we are involved in structuring there. Oh yeah, they are UK, EU AND worldwide compliant. AND, before you go hit Google maps, Gibraltar sticks out from the far southwest corner of Spain just across from Africa (you can see it). It has a “big rock” like in the old insurance ads. Go Big G.
(Bill Taylor/Founding Editor)

“LONDON (Reuters) – Gibraltar will introduce the world’s first regulations for initial coin offerings with dedicated rules for the cryptocurrency sector whose fast growth has triggered concern among central bankers.

They are worried about financial stability and protecting consumers but regulators have so far adopted a patchwork approach to ICOs, ranging from bans in China to applying existing securities rules in the United States.

This has created legal uncertainty for transactions that sometimes straddle many countries.

An ICO involves a company raising funds by offering investors tokens in return for their cash or cryptocurrency such as bitcoin, as opposed to obtaining shares in the company from a traditional offering.

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.

Gibraltar’s government and Gibraltar Financial Services Commission (GFSC) said lawmakers will discuss a draft law in coming weeks to regulate the promotion, sale and distribution of tokens connected with the British overseas territory…”

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