GFSC first DLT Licenses

A number of companies applying for licences under Gibraltar’s regulatory framework for Distributed Ledger Technology businesses have cleared the first hurdle toward being fully licensed. The Gibraltar Financial Services Commission communicated “in-principle” decisions on the first batch DLT provider licence applications. Since January 1, 2018, any firm carrying out by way of business, in or from Gibraltar, the use of DLT for storing or transmitting value belonging to others, needs to be authorised by the GFSC as a DLT Provider, subject to the transitional arrangements.

The GFSC said its DLT team had been working hard to process full applications and today marks a significant milestone in the regulation of DLT businesses. An “in-principle” decision is the first stage of full authorisation where an applicant needs to satisfy the GFSC on one or more requirements in order to obtain a licence. In an interview with GBC, Samantha Barrass, the chief executive of the GFSC, said the applications included some “internationally-strong players”.

Ms Barrass told GBC the GFSC has had a very busy two weeks making decisions in relation to the first cohort of applicants. “We’ve made our decisions around ‘in principle’ approval of this cohort to come through,” she said. “So it won’t be full licensing, because they are still in principle approval, there will still be a few things that they will need to do. I am very excited about it,” she added. “We have seen some very internationally- strong players.The business models are complex.They are potentially completely transformative, as far as that sector is considered.It is very clear to me that Gibraltar in setting up a fully functional regulatory system and framework is likely to become a very significant centre for this new sector that is coming through.”