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Bringing “Tried and Trusted” to token generation events and other blockchain businesses

18.06.2018 | News

This year has proved to be an expansive one for Gibraltar. The Rock established itself as a world-leading Distributed Ledger Technology (DLT) jurisdiction for blockchain-based companies and as a result Fintech startups wishing to use an Initial Coin Offering (ICO), or token sale, to raise funds for their innovative projects have been swift to arrive in Gibraltar. Setting up in this jurisdiction requires sound legal counsel, which Triay is delighted to supply via its Fintech team.

Senior Associate, Jay Gomez, showcased Triay’s expertise in this new business sector at the recent

ICOs, or token sales as some prefer to call them, following the questions that have been raised about their legitimacy, were naturally a hotly debated topic at the forum. ICOs generally do not fall within the remit of the DLT Regime. However, the Government of Gibraltar, GFSC and industry have announced that they are working in unison to create a regulatory regime for token sales. Government is seeking to have these new regulations in place for the beginning of Q3 of 2018.

Gibraltar’s DLT Regs

The use of DLT for storing or transmitting value belonging to others, if carried on, by way of business, in or from within Gibraltar is licensable under the DLT Regs. The DLT Regs sought to regulate crypto exchanges and /or crypto custodians (aka wallet providers) (hereinafter DLT Providers). For ease of understanding these entities provide safekeeping services for individuals seeking to safeguard their crypto assets.

Therefore, a DLT provider established and regulated in Gibraltar must operate to the highest regulatory standards and must be able to demonstrate, amongst other things, honesty and integrity, the maintenance of financial and nonfinancial resources and the management of their business with due skill and care in order to be granted a license.

Are tokens a security?

One of the issues that have plagued financial regulators is that of security tokens. Generally, there are two types of token: security tokens and utility tokens. Security tokens are akin to traditional or conventional financial securities , whilst utility tokens normally provide access to a company’s product or service. In other words they have a practical use. Gibraltar law, as it currently stands, only regulates security tokens by virtue of ‘traditional’ financial services legislation.

Triay are expertly placed to advise on whether a token is in fact a security token or a utility token and to ensure that the highest level of quality compliance is met.

Triay will ensure your token sale is legally watertight

Triay’s blockchain legal experts have drafted proposals for start-ups wishing to implement a token sale from Gibraltar. We can establish a private company limited by shares in approximately three days and undertake all the legal work, including the token sale agreement, the whitepaper, website Terms & Conditions and advise on the setup of the Know Your Customer (KYC) procedure with regard to token buyers. The latter is absolutely essential to comply with anti-money laundering (AML) regulations. We can also assist with the bank account opening process in Gibraltar.

Our legal opinion is critical to token sales being structured in Gibraltar, and Triay’s Financial Services Team are regarded as one of the very best in Gibraltar, and its members have played a key role in Gibraltar’s growth as a Fintech jurisdiction.

When you need the best advice for your ICO/token sale – contact us at and request an appointment.


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