New Gibraltar Blockchain Laws Are World’s First Regulations For Bitcoin

Bitcoin online CasinoRecently passed Gibraltar blockchain laws makes the British overseas territory the world’s first jurisdiction to establish a regulatory framework for companies utilizing blockchain technology.

Blockchain technology, more formally known as Digital Leader Technology (DLT), is the technology utilized to securely manage the database that records (stores and transmits) cryptocurrency transaction, such as Bitcoin transactions.

Although a British territory, Gibraltar’s legal system is independent from the UK. The major pillars of the territory’s economy include financial service and online gambling. Both of these sectors will be subject to the new legislation laid down by Gibraltar law.

The new bill was passed in the 17-member local parliament back in December and came into effect the 1st of January. It requires all businesses, including gambling operators, using DLT to acquire a license from the Gibraltar Financial Services Commission (GFSC).

More specifically, according to the Gibraltar blockchain laws, companies who store and transmit value must now be licensed by the GFSC.

The new regulations are designed to protect consumers and the reputation of Gibraltar

The GFSC said in a statement that the primary objective of the new laws is to not only protect the reputation of Gibraltar but also protect consumers. This primary objective will be considered when any company applies for a license and in regard to how the GFSC supervises and enforces regulations.

Under the new Gibraltar blockchain laws, there are nine regulatory principles designed for DLT applications. Companies who utilize this tech should avoid misleading customers and should communicate in a clear manner.

What’s more, the regulations have made it mandatory for blockchain businesses to ensure the protection of clients’ assets. This includes having a clear disaster management plan in place.

“We are really excited to finally welcome applications from DLT providers; the team expects to be very busy in the coming months, and are looking forward to working on some interesting and innovative ideas with applicants,” said Nicky Gomez, head of risk and innovation at the GFSC.

“Working closely and collaboratively with the financial services industry and the Government of Gibraltar has resulted in the GFSC becoming the first regulator to introduce a DLT Regulatory Framework,” Gomez added.

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About The Author

As both a player and a fan of strategy analysis in the area of online gambling, my goal is to share the latest information and news about online casinos and the games that they offer. My background was originally in writing guidebooks for the individual games, as well as for tournaments, but after a decade of that, I chose to expand my experience to writing honest, objective, and helpful articles.

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