DLT (Distributed Ledger Technology) significantly contributes to modernize transactions and financial records keeping. Intermediaries as banks or authorities are no longer needed. 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.
Hristo Yovchev
1Legal.Net Blog © 2018
Materials published on this blog are copyrighted. No part of them can be copied or used without the express permission of the author.
There are no comments at the moment.