On 27th October 2025, Gibraltar will implement amendments to its financial regulatory framework. These changes primarily focus on the regulation of virtual asset arrangements (VAAs) (also known as Virtual Asset Service Providers/VASPs), reflecting Gibraltar’s evolving approach to digital finance and distributed ledger technologies (“DLT”). Previously, VAAs only required a registration pursuant to the Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021. Now, VAAs fall within the remit of the Financial Services Act 2019.
Key Highlights:
- Virtual Asset Arrangements as Regulated Activities: The Financial Services Act 2019 will now include VAAs as a regulated activity, alongside DLT. This is codified under new paragraphs 139A and 139B in Part 16, Schedule 2.
- Definition and Scope: VAAs involve the exchange of virtual assets for fiat currency, fiat for virtual assets, or one virtual asset for another. Certain entities, such as collective investment schemes and pension funds, are excluded when dealing on their own account.
- Terminology Updates: The term “virtual asset” adopts the definition from the Proceeds of Crime Act 2015.
- Regulatory Integration: The Financial Services (Distributed Ledger Technology Providers) Regulations 2020 are renamed to include VAA Providers, with corresponding updates throughout the regulations to reflect this broader scope.
- Transitional Provisions: Entities currently registered under the Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021 for VAAs must:
- Notify the Gibraltar Financial Services Commission (“GFSC”) within 14 days of the 27th October 2025.
- Apply for Part 7 permission within six months to continue operations.
- If the notification and application provisions directly above are complied with, they may continue operating during the application process without breaching the Act.
- Consequential Amendments: Adjustments are also made to the Proceeds of Crime Act 2015 and its associated regulations to align with the new regulatory framework.
If you need assistance in notifying the GFSC and/or applying for Part 7 permission to ensure your firm meets these obligations, please don’t hesitate to get in touch. Email: Johnluis.Pitto@Triay.com
The information, materials and opinions on this page are for general information purposes only, are not intended to constitute legal or other professional advice and should not be relied upon as such. Please see our website T&Cs for more information, including our disclaimer.
