CRYPTOCURRENCY LICENSES IN GIBRALTAR

Beginning 1st January 2018, the Financial services (DLT providers) Regulations 20171 (DLT regulations) allow businesses utilizing DLT (Distributed Ledger Technology) technology to be standardized. This establishment lets cryptocurrency business to be regulated and request for DLT provider License to regulator, the Gibraltar Financial Service Commission, also known as GFSC. We speak for quite a few cryptocurrency projects and have the experience of having helped them with their request for a license and are thus well-positioned to guide our customers through the entire regulatory procedure.

A request for a DLT Provider License to the GFSC must be made. This is a financial Services License where the claimants must show how their ventures will abide by the nine DLT Regulatory rules. It is anticipated that “mind as well as management” will belong to Gibraltar. It is compulsory therefore for senior personnel, to be located in Gibraltar and all main strategic decisions must be made here. This is of vital essence. The primary role holders are expected to work here such as the CTO, CFO as well as the CEO.

The nine DLT governing principles and the DLT support notes

Gibraltar –regulated DLT ventures must follow the Nine DLT governing principles laid out in the DLT rules. More information on these values, as well as the expectations of the GFSC, are exhibited in the DLT support notes released by them which can be seen at www.gfsc.gi/dlt. Visit this page and scroll down then tap on the “guidance notes” tag. Present, are nine documents which reflect the nine governing principles which every regulated DLT supplier must adhere to.

The DLT rules require DLT organizations to:

  1. Manage their ventures with integrity as well as honesty
  2. Pay attention to the needs and welfare of all its clients and converse with them in a transparent, fair and truthful way
  3. Maintain sufficient financial as well as non-financial resources
  4. Manage and run their businesses efficiently, and handle them with proper diligence, expertise, and care, such as having appropriate regard to risks to its venture as well as clients
  5. Have effectual arrangements positioned for the shielding of the assets as well as funds of the clients when they are in charge of them
  6. Have efficient corporate governance provisions
  7. Make sure that every system and security access procedures are upheld at the suitable high standards
  8. Have systems as well as measures in place to avoid, spot and unveil financial crime threats like the financing of terrorists, and money laundering
  9. Be irrepressible and have contingency provisions for the systematic as well as solvent wind down of its venture

Our services

A thorough business plan is necessary as well as a variety of policy documents laying out proposed fulfillment of the nine DLT Governing principles. We will assist you with the DLT supplier license to the GFSC. The

extent of our work includes:

  • Assessment of the business plan, propose changes as well as improvements and adding the legal and regulatory sections
  • Offering our advice on financial estimates as well as capital sufficiency requirements. Regarding this, we have created a model as the regulations do not have any hard rules
  • Drafting a corporate regulatory policy together with other related policies
  • Writing a risk controlling policy as well as the risk register
  • Drafting up an anti-financial crime document
  • Preparing a client due diligence courses documents
  • Offering a risk assessment approach
  • Drafting a data protection document
  • Outlining terms and conditions of use for clients for the trade
  • Drafting a privacy and cookie document
  • Help with the filling in of the GFSC application forms (first & final application)
  • Assisting the applicant to the exhibition to be offered to GFSC as a part of the process of application
  • Help with creating a Gibraltar bank account – to set up as a venture in Gibraltar other works not linked to the DLT supplier License application is necessary.

We will help you with:
Integrating a Gibraltar firm to run the cryptocurrency business and to request for the DLT supplier license.
Registering the firm with the Gibraltar Employment service, opening opportunities for workers, and registering for work permits and help with Visas if necessary.
Drafting the employment contracts as well as employee handbooks
Tax advise
Assessment of commercial leases for the business grounds as well as other property-related work.

General information on cryptocurrency licenses in Gibraltar

Documents and details to begin the DLT provider process of application

The initial step of this process of application is to have an introductory meeting with the GFSC and then to fill in as well as submit a First Assessment application form. This form requests the following fundamental documents as well as the details laid out below. As a minimum requirement, we will need this information from you:

Documents

A detailed business plan – it is necessary that the applicant drafts this, although we will review and help so that it will have all the details which are needed.

Information on corporate governance – we will draft an appropriate document with the assistance of the applicant.
Information on the organizational structure – this will include a structural organogram, information about the directors, other significant personnel as well as their responsibilities and particulars of the shareholders & the shareholding structure.

Whitepaper – this is if you are supplying tokens

Information

Business model

This involves an overview of the products, services, and activities to be offered and how they will generate income

Long term goals and strategy

This is basically how familiar the applicant is with technology for the trade. Whether he or she is designing this for themselves or if they are using another firm’s software, and if the trading platform is stress tested. If the organization will be issuing tokens, a review of how it will release them and how they will be redeemed is necessary

Average percentages of ventures to be accessed from every target jurisdiction, in regards to revenue generation and customer base numbers.
Information on how the venture will handle client assets
The kind of clients to be targeted – institutional, retail or experienced, among others

The number of workers to be outsourced and information on the proposed outsourcing plan, if any, for instance, checking of identity, software development, and IT support.
Significant risks as well as planned actions to reduce them
Particulars of the resources the venture will have in place to reduce IT and Cybercrime risks on a frequent basis.

Particulars of the founders` experience, directors as well as senior personnel. The ideal approach is to have detailed CVs.
Information on how the venture will be funded
Negative financial details, if any about the founders, senior personnel as well as the directors such as if they have ever filed for bankruptcy, or they have ever been declared bankrupt if an administrator has been employed in regards to their assets or they have been through any insolvency or proceedings similar to this. The GFSC will also requires to know if any one of them has been subjected through criminal investigation (in regards to violence or dishonesty offenses) or conviction or managerial investigation.

Cryptocurrency licenses in Gibraltar - The process of application charges & time estimates

GFSC is committed to finishing the entire application procedure within three months. The full time, on the other hand, is more likely to be approximately four month. See below a realistic timeline:

Submit the first application assessment as well as the necessary documentation. The GFSC 3-month duration starts after you submit. The GFSC is committed to revisiting within 14 days of the first application being filed. If the GFSC see that any significant details or documents are missing, they can request for re- submission. In this case, you are required to wait for another three months.

After GFSC revisit in regards to the first application assessment, the 3-month clock stops ticking. They give you feedback on the issues they expect to deal with in the last application, and they will classify the venture as

Category 1 – -paying yearly license charges of £ 10,000
Category 2 – paying an annual license fee of £ 20,000
Category 3 – paying a yearly license of £ 30,000

The final application form requires

This form is to be presented with a complete business plan as well as copies of all the policies. It will take time to be ready to submit all these documents. After submission, the GFSC`s 3-month clock begins ticking again. In this situation, the GFSC has typically two and a half months left to finish the process of application.

The presence of ICO-related regulations and organization is good news for your business since they offer you a platform for your venture and also offer you professional legal advice about anything related to cryptocurrency. When we talk of the legal side of the blockchain projects, and ICO you can never be too careful. There are numerous shortcuts and methods to bend the rules, but eventually, this will generally bring you more harm than good. Consider GFSC to avoid any problems.

With new tokens, as well as cryptocurrencies, being launched and with the significant influx of cash the industry has seen recently, it is anticipated that guidelines, as well as legislation, will be the solution. For the time being comply with the existing ones and request professional advice to be in control of your venture.

Please contact us to get more information and prices on obtaining cryptocurrency licenses in Gibraltar. 

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