The Distributed Ledger Technology Regulatory Framework (DLT framework)
Since January 2018, Gibraltar’s purpose-built Distributed Ledger Technology (DLT) framework has been in effect. One of the first pieces of legislation of its kind globally, the framework has been designed to provide an efficient, safe and innovative regulatory framework for firms that use DLT for the transmission or storage of value belonging to others.
The framework positions Gibraltar as a jurisdiction which facilitates innovation, whilst ensuring it continues to meet its regulatory and strategic objectives and understands the modern need for robust and speedy interaction with regulators in this fast-moving area of business.
The Gibraltar Financial Services Commission has the responsibility to issue licences under the nine core principles as listed in the DLT Regulations, which can be read here.
The GFSC believes a flexible, adaptive approach is required in the case of novel business activities, products, and business models. We consider that regulatory outcomes remain central but are better achieved through the application of principles rather than rigid rules. This is because for businesses based on rapidly evolving technology such hard and fast rules can quickly become outdated and unfit for purpose.
Gibraltar will apply suitable anti-money laundering requirements to authorised DLT Providers that require it. This is also in line, and ahead of, some of the proposed changes to the EU’s Fourth Anti-Money Laundering Directive.