Covesting awarded DLT licence
The Gibraltar Financial Services Commission has granted a full Distributed Ledger Technology licence to COVESTING, a cryptocurrency exchange and copytrading platform. Following an intricate application process, COVESTING is now authorised to store or transmit value belonging to others using blockchain technology.
“New technologies like blockchain will play a significant role in directing the future of innovation and we believe that we are well positioned to see the sector go from strength to strength here in Gibraltar,” said Gibraltar’s Minister for Commerce, Albert Isola. “Our goal is to create an environment that is conducive to further development in this area, the foundations of which were laid when we introduced robust DLT legislation earlier this year. This licence highlights the groundbreaking work of leading blockchain projects in collaborating with regulators here to help us realise that vision together.”
The granting of the licence recognises COVESTING’s full compliance with Gibraltar’s DLT legislation, which is a purposebuilt legislative framework for businesses that use blockchain or DLT, introduced in January of this year. Gibraltar’s principles-led approach facilitates thorough and regular engagement between businesses and regulators while also allowing flexibility for guidelines to evolve alongside developments in the blockchain sector. Businesses interested in obtaining the DLT licence have been engaging in discussions with the GFSC since the introduction of Gibraltar’s DLT legislation in January.
Once the GFSC was satisfied that the proposed business activities would require a licence, the companies were then subject to a risk assessment by the regulator. A vital component of the application process involved an in-person presentation made by applicant representatives to the GFSC where a comprehensive plan for meeting the nine regulatory principles was outlined.
“The COVESTING team have displayed a deep appreciation for the need to develop a sustainable blockchain ecosystem, built on the principles of transparency and efficiency. I have been impressed by the team’s drive and ambition to meet such a high standard in secure,” Mr Isola said. “Today’s announcement is vindication of their tireless efforts to date, and I look forward to seeing the platform push forward in the months and years ahead.”
COVESTING, which has offices in the World Trade Center, is incorporated in Gibraltar. The company says one of its primary goals is to ensure it is operating within a regulated environment and “ahead of the curve” when it comes to following industry’s best practices.
“COVESTING is heavily focused on providing a secure, and legally compliant platform in the Cryptocurrency industry and we realize how vital it is to establish ourselves in a location in which the industry has support from its government and service providers,” the company says.