The Gibraltar Government has today published regulations providing for distributed ledger technology services to be regulated as a controlled activity under the Financial Services (Investment and Fiduciary Services Act.
In a press release issued on 13 October 2017, the Government confirmed the new regulatory framework, borne of a two year process of conceptualisation and consultation which was launched in May 2017, is on schedule for commencement in the New Year and confirmed the principles-based approach advocated by it. ISOLAS are very happy to have contributed to that process over that period and to have had Joey Garcia recognised for his contribution in the press release – see below
“Albert Isola MP, Minister for Commerce commented, “I am delighted and excited in equal measure to publish this legislation today, after an extended period of thinking, consultation and review with the Industry and experts in this field. I am most grateful to the DLT Working Group, Sian Jones, Nicky Gomez and the team at the Gibraltar Financial Services Commission and to the individuals who have willingly shared their insight in the creation of this framework. I believe this framework will provide strong long term economic opportunity across many key areas of our economy.
International reaction to our initiative has been overwhelmingly positive and reaffirmed our ability to embrace change in a safe and regulated environment; we have done this before and will do so again. The DLT framework positions Gibraltar as a jurisdiction which facilitates innovation whilst ensuring it continues to meet its regulatory and strategic objectives”
Samantha Barrass, CEO of the Gibraltar Financial Services Commission ““Today’s publication places Gibraltar at the forefront of the regulation of Distributed Ledger Technology businesses and is a wonderful example of what can be achieved through greater collaboration among industry, government and the regulator. I truly believe that this regulatory framework demonstrates that regulators can keep up to date with technology without stifling innovation, protect consumers and create a well-regulated safe environment in which financial technology can flourish.””
Marcus Killick, CEO of ISOLAS LLP commented that it represents “the creation of a flexible but clear regulatory regime that allows Gibraltar and its regulator to keep pace with this rapidly developing market. By being able to apply regulations on a case by case basis Gibraltar has managed to marry the needs of the firms in this sector and the participants who utilise them. The use of a principles based regime is a model that others will undoubtedly follow.”
ISOLAS are happy to have been able to contribute to this process over the last 2 years with partner Joey Garcia co-chairing the Gibraltar Government working group on distributed ledger technology. Joey commented ‘its very exciting to see this process come to fruition. There has been a huge amount of international interest in what we are doing and how we are approaching this new area and we are delighted to be at the forefront of developments in this space.