Regulatory framework on ICO’s to supplement Gibraltar DLT Regulations
On 12th October 2017, the Government of Gibraltar published its draft regulations on distributed ledger technology (the Regulations) – Gibraltar Publishes DLT Regulations
The Regulations essentially create a licensing regime for “distributed ledger technology providers” and seeks to regulate the entities involved in DLT-based business.
However, the Regulations are silent on initial coin offerings (ICO). In a nutshell, in an ICO a company sells tokens to early backers of the project in consideration for legal tender (or other tokens). ICO’s are essentially a variation of rewards based crowdfunding but despite their increasing prominence, certain jurisdictions have maintained their doubts (they were recently, and most notably, banned in China).
Wednesday 18th October 2017 saw Gibraltar host its first ever International Fintech Conference (Gibfin). At the conference, the Gibraltar Financial Services Commission GFSC stated its intention to release a complimentary set of guidance notes.