Redistribution of The Global Crypto Market. When?
CryptoBit News Today1 min read
The Gibraltar Financial Services Commission (GFSC) provides an objective, flexible, and principles-based regulatory framework for distributed ledger technology (DLT). Under these rules, Gibraltar firms that use DLT to store or transmit value belonging to other parties must obtain a licence from the GFSC. The GFSC's principles-based, flexible approach prioritizes consumer protection and Gibraltar's reputation in evaluating licence applications and overseeing operations.
Regulatory frameworks introduced in Gibraltar and Switzerland
The Swiss Financial Market Supervisory Authority (FINMA) issued guidelines detailing how it plans to apply financial market legislation when addressing enquiries from ICO organisers. Aiming to address the surge in ICO activity in Switzerland, FINMA clarified the information it requires and the principles defining each token type. Payment tokens, intended for monetary transfer, must comply with anti-money laundering rules, while asset tokens are treated as securities.
Malta's legislative push to regulate blockchain and ICOs
In June 2018, Malta enacted three bills creating a comprehensive regulatory framework for blockchain and cryptocurrencies. Bill 45 establishes the Malta Digital Innovation Authority to promote blockchain growth. The VC Bill sets up a regulatory regime for ICOs and certain virtual currency services, alongside Malta's legal recognition of smart contracts and DAOs.
The proposed framework, including the Virtual Financial Assets regime, will apply a "Financial Instrument Test" for ICOs. By providing regulatory clarity and a business-friendly environment, Malta aims to position itself as an international crypto business hub.
The country's proactive legislative efforts have already attracted some major players in the space. Binance, the largest cryptocurrency exchange in the world by trading volume, selected Malta for its new headquarters following warnings from Japan, China, and Hong Kong. The island nation has drawn around two dozen blockchain enterprises, including the equity fundraising platform Neufund.
Malta's sandbox serves as an example for regulatory authorities across Europe and worldwide.
