The GFSC [Gibraltar Financial Services Commission] has updated its guidance file for the DLT [Distributed Ledger Technology] providers. The amended guidance now includes clarity on token issuances and proposals for risk management.
In line with a recent official announcement, the GFSC has made considerable updates to 7 out of the 9 guiding principles on which the regulatory framework, which was launched earlier in 2018, was set up.
As per the announcement, the amendments reflect the “natural evolution of the defined regulatory principles” to incorporate new developments within the ecosystem.
The updates include a risk framework to differentiate between digital assets & digital asset denominated instruments that are arguably higher risk, the announcement added.
The guidance on tokens specifies that following a public token offering, DLT providers won’t be permitted to use reserves of internally generated tokens as a part of its regulatory capital requirement, and incorporates a new section detailing associated risks related to stablecoins.
The new updates are a part of an ongoing effort to adapt its regulatory framework to incorporate the newest FATF [Financial Action Task Force] recommendations for digital assets service providers.
The EU [European Union] has criticized Gibraltar’s efforts to stem money laundering within the past, mentioning its DLT rules within the process.
Presently, 13 DLT suppliers are licensed beneath the Gibraltar regulator, along with global service providers like eToro, Xapo & Bitso.