Gibraltar Blockchain Exchange (GBX) became the first ever fully regulated crypto exchange to get approved by the regions financial regulator. The Gibraltar Financial Services Commission (GFSC) granted GBX the license to work under the jurisdiction of blockchain technology.
Every exchange in the island of Gibraltar should be regulated under its laws. Laws and framework are already set up for the distributed ledger technology in the region. The nation’s Financial Services Regulations Digital Ledger Technology (DLT) framework will act as the exchanges’ guidelines.
Island’s Crypto Ecosystem
GFSC’s approval did not come as a complete surprise to the country. The crypto ecosystem in the island of Gibraltar is quite friendly. The country is recognized as one of the leading cryptocurrency and blockchain-friendly destinations.
The country saw over 200 ICO projects in the first few months of this year. This influx motivated the state and the GFSC to form a regulatory framework. In January 2018, the GFSC announced that it was mandatory for every blockchain-based firm to abide by the newly set up rules. GFSC made it necessary to acquire regulatory approval by applying for a license to “store or transmit value”.
The regulatory approval secured by GBX marks a “significant milestone” for the industry. “A secure and regulated” market will greatly benefit the exchange as well as the global crypto market.
Nick Cowan, the CEO of the Gibraltar Blockchain Exchange, lauded the nation’s crypto-friendly stance. Cowan commented that he found the right blend of supportive and sustainable regulations that will allow blockchain companies to flourish. Cowan added that the regulatory environment was geared towards promoting innovation in the sector.
Gibraltar Stock Exchange launched its Blockchain Exchange subsidiary in July this year. GBX is an “institutional-grade” platform tailored for token sales and digital asset exchange. The platform currently supports trading of six crypto pairs, including top coins Bitcoin (BTC) and Ethereum (ETH) against USD. The exchange has plans to provide further onboarding for fiat currencies to add to the U.S dollar. The exchange will also offer a chance to its users to trade fiat against its native token, Rock (RKT).
The DLT license caps an important span of sustained growth for the exchange as well as the industry. The exchange was able to gain the approval only a few months after the full-scale public release this past July.
“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.”