The government of Gibraltar published a new document on token regulation.
The document warns that “tokens do not constitute any form of regulated financial instrument, either in Gibraltar or, generally, elsewhere in the EU”. So they remain unregulated and highly-speculative.
In the published whitepaper, it suggests treating tokens as commercial products that “represent the advance sale of products that entitle holders to access future networks or consume future services.”
In addition, the document says that all the organizers of the ICO in the country should appoint a responsible person who will monitor the progress of sales of tokens and the compliance of this process with regulatory requirements.
The Financial Services Commission of Gibraltar (GFSC), in turn, will monitor operations in the secondary token market and create a public register of such transactions. The government will also regulate the activities of consultants specializing in the crypto-industry.
Gibraltar’s government goals are to protect customers, to protect Gibraltar’s reputation, and to support the safe use of token based.
The document is the second version of what has been started in 2017. The earliest statement explained that “ICOs are an unregulated means of raising finance in a venture or project, usually at an early-stage
and often one whose products and services have not yet been significantly designed, built or tested,
let alone made operational or generating revenue. Such forms of crowdfunding are often used by
start-ups to bypass the rigorous and regulated capital-raising process required by venture capitalists
or financial institutions.”
The newly proposed regulatory will legislate the following activities conducted in or from Gibraltar.
“A draft Bill is expected to be ready by the end of March 2018. Draft Regulations for the promotion, sale and distribution of tokens should be ready in May 2018. The last of the three Regulations should be completed by the end of October 2018.”