New Regulations On Blockchain In Gibraltar

New Regulations On Blockchain In Gibraltar

With the regulations taking place Gibraltar will probably be seen as more attractive destination for fintech companies, which like to benefit from them. Hopefully, this scenario will ease the pressure on the self-governing territory, when it leaves the EU in 2019.

American Express Joins Open-Source Hyperledger Project
American Express Opens Blockchain Payments Channel
Amex Launches Blockchain-Based Payments Corridor Using Ripple

Gibraltar is going to become the first country to officially recognize blockchain technology as a method of payment transaction. The country’s financial services are now licensing “fintech” firms in order prepare for Brexit. The state hopes that this way they will attract more start-ups to Britian. Some may say that blockchain is overhyped, while other believe it will be globally used in the near future.

All around the world business is craving for fintech companies, so it is up to the regulating institutions to take the necessary actions and authorize blockchain as a way for transmitting payments. The Gibraltar Financial Services Commission has adopted a new law, which regulates the use of blockchain when transferring or storing money. With the new law, every action made by the users is legal, just like banking is. Reuters report that GFSC’s head of risk, Nicky Gomez, insists that they had taken the first step towards building legislative framework for blockchain business users.

In other countries such as the USA and Japan, they are focusing more on regulating cryptocurrencies and trade with them, rather than their core technology. What makes blockchain so attractive to customers is that it uses distributed ledger technology, which processes and updates data in real time, without the need of verification from third parties.

Fintech firms make great use of these features, as they provide transactions and data recordings to clients, which of course puts pressure on banks. If blockchain technology becomes first choice payment method in the future, supposedly we can omit bank services. American Express already accepts blockchain-backed payments through Ripple.

Alongside, fintech company R3 together with world’s largest banks have developed blockchain-based system for international transactions.

With the regulations taking place Gibraltar will probably be seen as more attractive destination for fintech companies, which like to benefit from them. Hopefully, this scenario will ease the pressure on the self-governing territory, when it leaves the EU in 2019.

COMMENTS