Gibraltar Stock Exchange’s Blockchain Subsidiary Acquires Full License

Gibraltar Stock Exchange’s Blockchain Subsidiary Acquires Full License

The Gibraltar Stock Exchange’s blockchain subsidiary has been given an official seal of approval by the country’s financial regulator.

The Gibraltar Blockchain Exchange (GBX) announced on Thursday, Nov. 22, that it has been granted a license by the Gibraltar Financial Services Commission (GFSC) under the new regulatory framework of the jurisdiction for distributed ledger technology (DLT). With this development, the GBX claims that it is the “first stock exchange to own a regulated blockchain exchange.”

The GBX came into origin in July and it was touted as an “institutional-grade” digital asset exchange and token sale platform. At present, the exchange offers the onboarding of the US dollar in addition to “a number of trading pairs against the USD.” Plans are underway for more trading pairs and fiat options in the future.

Speaking on its new status, the exchange stated, “The license that has been acquired by the GBX is Category 3, representing the highest category that can be awarded within the DLT regulatory framework.”

Acknowledging this fact, the CEO of the exchange, Nick Cowan, has this to say, “Gibraltar has found the right blend of sensible and supportive regulation, which has helped position the jurisdiction as a lodestar for the global cryptocurrency space while allowing blockchain companies to flourish.”

In January, the GFSC announced the DLT regulatory framework, which made it compulsory for companies making use of blockchain to “store or transmit value belonging to others” to file an application for a license. The plan to develop the new licensing scheme was made public in December 2017.

In March of this year, the government of Gibraltar revealed that it had intentions of regulating initial coin offerings (ICO) carried out in its domain. The government based its decision on the fact that “most tokens are not considered securities under either Gibraltar or EU law.”

In conclusion

The Gibraltar Blockchain Exchange, a subsidiary of the Gibraltar Stock Exchange, has received a license from the country’s financial regulator. This official approval has put the exchange in pole position as the first-ever stock exchange to own a blockchain exchange that is regulated. Currently, US dollar onboarding and some amount of trading pairs against the USD dollar can be carried out in the exchange, with more options being planned in the future.

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