The Gibraltar Financial Service Commission (GFSC) who has been really vocal about its crypto guidelines in the country lately has labelled three websites as illegal, claiming to have acquired the regulatory license in the country but in reality, they’ve not. It has warned users that these companies are not licensed by them neither they have an impending ‘in-principle’ application. The three websites are www.askcurrency.org, www.etrustcoin.com and www.arbitragecurrency.org.
An impending application is the first steps towards requiring a crypto license in the country and be part of the crypto industry. One of them even put a GFSC logo to appear authorized.
They’ve DLT regulations which are a set of 9 principles. The principle included anti-money laundering policies, financial resources and IT system, also honestly and integrity on the part of the crypto exchanges in the country. When a firm applies for the license, the first step is an in-principle application, which is only approved if the firms meet the required DLT regulations of the GFSC.
DLT regulations by GFSC ensures Customer Safety
The DLT regulations ensure that crypto entity in the countries are up to the mark and aren’t fraudulent. It safeguards the trust of the customers and makes them feel they are investing in a reliable entity and provide financial security.
With the prevention of financial crime continuing to be one of the GFSC’s main objectives, updated advice for firms on #COVIDー19 : AML/CFT systems of controls can now be found on our websitehttps://t.co/pIwE8VUoGm#AML #CFT
— Gibraltar FSC (@gibfsc) May 19, 2020
While this does make crypto functioning in the country hard as the process is not as simple as it appears on the paper, it does curb scams and money laundering through exchanges in the country. To get the approval, however, is not easy as multiple tests and interviews are conducted to ensure that the required criteria are being met.
The GFSC has listed these three websites to warn the customers to stay away from them and not invest as they could be fraudulent and have not even an in-principal application in place which is just the first step towards requiring the license.
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