While traditional financial hubs such as the UK are moving away of cryptocurrency businesses, other destinations begin to emerge on the virtual currency map.
The Gibraltar Financial Services Commission, which is the leading financial regulator in the aspiring British Overseas Territory, recently announced that it explores introduction of a dedicated regulation of the cryptocurrency exchange sector, as early as beginning of 2018. It is expected that from January 2018, a new legal and efficient framework will regulate companies using blockchain. The exact wording of the new legislation focuses on companies dealing with “storing or transmitting value belonging to others.”
The easiest way for blockchain and cryptocurrency businesses to gather investment funds is through the so called initial coin offerings (ICOs). These unregulated pooling of funds will most likely receive some form of regulatory oversight in the near future, due to large amount of public interest and risks involved in the process. For example, investors have no alternative ways to seek financial compensation options or even the services of an ombudsman.
The statement from the GFSC reads as:
“ICOs are an unregulated means of raising finance in a venture or project, usually at an early-stage and often one whose products and services have not yet been significantly designed, built or tested, yet alone made operational or generating revenue.”
Healy Consultants expects Gibraltar to continue being on the top of the list of cryptocurrency-friendly countries.
For overview of cryptocurrency-friendly countries see map below (click here for more information):