Gibraltar, one of the crypto-friendly jurisdictions, will adopt rules in the coming months to counter the manipulation of the digital asset market and implement FATF guidelines for the industry.
In an interview with The Banker, the Minister for digital and financial services, Albert Isola, noted that they approach cryptocurrency regulation as a financial services industry.
In early 2018, the overseas territory of the United Kingdom adopted regulatory rules for blockchain startups and cryptocurrency exchanges and began its licensing. A legislative framework for ICOs has also been introduced.
In connection with the decline in the last two years of the popularity of this form of fundraising, the Gibraltar authorities shifted their attention to the cryptocurrency sector, the minister explained.
In addition to the guidelines for market manipulation, a technological solution is being developed that will allow cryptocurrency firms to collect customers’ information similar to traditional banking. This is designed to ensure that industry participants comply with the FATF recommendations published last year. In particular, we are talking about the need for data exchange between users in accordance with the so-called “road rule” of the regulator.
Isola emphasized that the 15 licensed blockchain companies in Gibraltar are subject to the same supervision regime as banks and financial companies, including on-site inspections and assessment of KYC procedures.