Cryptocurrency licenses in Gibraltar: difficulties and specifics of obtaining
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.
Important specifics of obtaining cryptocurrency licenses in Gibraltar
GFSC is obliged to complete the entire process of analyzing a license application within three months, but in practice this process usually takes up to four months.
2. Current account
Like in Malta, in Gibraltar, one of the main difficulties of the blockchain and cryptocurrency sectors is the difficulty in opening a current account even after going through all the procedures and obtaining expensive licenses.
3. Special requirements of the commission
GFSC expects that the intelligent and administrative management, general, financial and technical directors, as well as senior staff, will be located in Gibraltar. All key strategic decisions must be made there. This principle is fundamental to obtaining a license.
A significant disadvantage of a license in Gibraltar is its cost. Total cost of the project ranges from 50,000 £ to 200,000 £. This significantly exceeds the cost of a similar license not only in Estonia, but also in Malta.
Cryptocurrency licenses in Gibraltar are divided into three categories
License for simple blockchain projects
10 000 £ annually
License for ICO projects
20 000 £ annually
License for cryptoexchanges
30 000 £ annually
The nine DLT governing principles and the DLT support notes
1. Honesty and Integrity. Manage their ventures with integrity as well as honesty.
2. Customer Care. Pay attention to the needs and welfare of all its clients and converse with them in a transparent, fair and truthful way.
3. Resources. Maintain sufficient financial as well as non-financial resources.
4. Risk Management. 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. Protection of Client Assets. 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. Corporate Governance. Have efficient corporate governance provisions.
7. Systems and Securities Access. Make sure that every system and security access procedures are upheld at the suitable high standards.
8. Financial Crime. 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. Resilience. Be irrepressible and have contingency provisions for the systematic as well as solvent wind down of its venture.
Support in obtaining cryptocurrency licenses in Gibraltar
1. Preparation for obtaining cryptocurrency licenses in Gibraltar
Before applying for cryptocurrency licenses in Gibraltar, we recommend that you obtain a legal assessment of the project.
This report contains all the necessary information about the regulatory environment related to the activities you intend to carry out in Gibraltar. Thanks to the report, you can make the right decision before the start of the planned activity.
The cost of this service varies depending on the complexity of the project and averages 8,000 €. We will provide more detailed information in person.
2. Getting cryptocurrency licenses in Gibraltar
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.
3. Doing business in Gibraltar
To manage your company in a proper way, other conditions should be met as well. We will assist 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
Assessment of commercial leases for the business grounds as well as other property-related work
The cost of all support services is calculated individually for each project and can be provided upon request
If you think that cryptocurrency licenses in Gibraltar do not match your goals, then you can consider a cryptolicense in Estonia