The Distributed Ledger Technology Regulatory Framework (DLT framework) of the Gibraltar Financial Services Commission publicly available from January 1, 2018, is a decisive step towards legalizing crypto projects and enhancing consumer and investor trust in ICO startups. Thus Gibraltar affirms as a reputable and progressive jurisdiction in the field of financial technology (FinTech).
The framework implements 9 core principles as necessary requirements to any authorized DLT service provider, namely must to:
1. Conduct the business with honesty and integrity;
2. Offer the utmost standards of customer care- they must always ensure all communications are clear-cut, transparent and without misleading;
3. Maintain adequate financial and non-financial resources;
4. Manage and control its business effectively;
5. Implement effective arrangements in place for the protection of client assets and money;
6. Make attentive consideration regarding structure, strategy, procedures and corporate culture;
7. Maintain high-level of all systems and security access protocols;
8. Maintain cutting edge systems in place to prevent, detect and disclose financial crime risks;
9. Be resilient and must develop contingency plans for the orderly and solvent wind down of its business.
The framework sets up a business-friendly but also legally regulated environment that is focused on outcomes, flexibility, adaptive approaches and security mechanisms.
With the DLT legal framework coming soon into effect, Gibraltar has a real potential of becoming a leader of this global market trend and an attractive financial hub for investors.
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