Crypto law in Gibraltar

Digital or virtual currencies are a medium of exchange but are not regular money. Unlike dollar bills and coins, cryptocurrencies are not issued or backed by the U.S. government or any other government or central bank. The lack of a physical token to count and hold may confuse some. Rather, Bitcoin and other cryptocurrencies are a form of digital currency used in electronic payment transactions—no coins, paper money or banks are involved; there are zero to minimal transaction fees; transactions are fast and not bound by geography; and, similar to using cash, transactions are anonymous.

Digital currencies are stored in digital wallets, which are software or apps installed by users on their computer or mobile device. Each digital wallet contains encrypted information, called public and private keys, that is used to send and receive the digital currency. All digital currency transactions are recorded in a virtual public ledger called the “blockchain,” which is maintained by digital currency “miners.” These miners can be anyone, anywhere in the world, who is willing to invest in the specialized computer hardware needed to rapidly process complex computations. Miners are awarded digital currency in exchange for verifying each transaction and adding it to the blockchain.

Gibraltar’s economy relies greatly on its offshore financial services centre. To this end Gibraltar very quickly took to the crypto currency and blockchain world in order to widen and diversify its portfolio to international clients. Even with the current developments in trading the currency and the significant falls in price the technology itself is proven and will not simply disappear. The news currently may not look good for the likes or Ripple, Doge, XRP or even Ethereum and Bitcoin but everyday has the chance of some sunshine the gloom for the coins that have structured well will not remain forever.