Gibraltar Blockchain Exchange Granted DLT License by Financial Regulator

Gibraltar Regulation
Mark Knowles
Written by Mark Knowles

The Gibraltar Blockchain Exchange (GBX) this week announced that it has been licensed as a provider of distributed ledger technology by the Gibraltar Financial Services Commission (GFSC).

As of Wednesday (Nov 21) the GBX will operate as a fully licensed provider of Distributed Ledger Technology (DLT), regulated by the Gibraltar Financial Services Commission under Gibraltar’s Financial Services Regulations 2018 DLT framework.

“This represents a significant milestone, not only for the GBX, but for crypto and exchanges worldwide. It is a significant move towards a more secure and regulated future for the blockchain industry, with the GBX at the forefront, leading the way in a bid to continually raise standards in crypto,” said the company in a press release announcing the news.

As a subsidiary of the Gibraltar Stock Exchange (GSX Group), an EU-regulated stock exchange, the GBX said it will be able to offer users an institutional-grade token sale platform and digital asset exchange “built on the best practices and highest industry standards.”

With the receipt of its license, the Gibraltar Stock Exchange becomes the first regulated stock exchange group to also own and run a regulated blockchain exchange.

Nick Cowan, CEO of the Gibraltar Blockchain Exchange said: “Securing authorisation as a DLT provider here in Gibraltar is affirmation of our tireless efforts to position the GBX among the premiere digital asset exchanges globally. Today’s announcement renews our ambition to create a world-leading, institutional-grade token sale platform and digital asset exchange. We’re incredibly excited to build on this wave of momentum following our full-scale public launch in August.”

The granting of its DLT licence follows the full-scale public launch of its token sale platform (GBX-GRID) in April 2018, and the subsequent launch of the secondary market platform, the Digital Asset Exchange (GBX-DAX) in July.

The GBX-DAX offers users various features, currently including USD fiat onboarding as well as multiple USD trading pairs. GBX said that in the near future, there are also plans to offer a greater number of fiat currency onboarding options, as well as a more extensive list of trading pairs.

“As a DLT licence-holder, the GBX is now in a stronger position than ever before as a blockchain exchange. This landmark announcement will doubtless provide an even greater springboard for future developments across the GSX-GBX ecosystem,” noted the company’s press release.

A DLT regulatory framework, implemented in January 2018, has positioned Gibraltar as a leading hub for blockchain technology in Europe. Licensees are overseen by the regulator in Gibraltar, the Gibraltar Financial Services Commission (GFSC).

“Gibraltar has found the right blend of sensible and supportive regulation, which has helped position the jurisdiction as a lodestar for the global cryptocurrency space, while allowing blockchain companies to flourish. Gibraltar’s emergence as a leading crypto hub hasn’t happened as a result of rushed regulatory action, but rather a methodical, considered approach. Crucially, here in Gibraltar, there has been a realisation that the pursuit of innovation should never come at the expense of sustainability and long-term development. I look forward to seeing this trend continue in the months and years ahead,” said Mr Cowan.

“This licence means a great deal to the entire GBX community, not least our users. From the very beginning, we have sought to build a platform defined by stringent regulatory safeguards and effective risk-based controls, while promoting the sensible and sustainable development of the industry. Today’s authorisation is an endorsement of this long-held position and evidence of the hard work put in up to this point,” he concluded.

About the author

Mark Knowles

Mark Knowles

Coinlaw Multi-Jurisdiction Blockchain News
Mark Knowles is the Executive Editor of coinlaw.io
With more than a decade of experience as a journalist and editor, Mark has now turned his focus to the blockchain and cryptocurrency revolution that is currently reshaping the global economy. As Executive Editor at Coinlaw Mark is working to create a website that is a hub for the international crypto community to find the latest legal news, legislative changes and expert opinion from across the industry. Contact him at [email protected] or through mobile on +66 (0) 98 705 2716.

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