The Gibraltar Financial Services Commission, GFSC, has updated its regulations related to the operation of DLT providers. The regulations have been updated in order to meet with the latest FATF rules. According to the firm, this action has been taken in response to the huge blockchain adoption and fast-moving nature of the technology. The commission is also aiming to support the companies meanwhile protecting the rights of the consumers.
GFSC Requires VASPs to Capture and Maintain Transactions Record
In the updated guidance by FATF, there are recommendations for virtual asset service providers (VASPs). Along with this, “Travel Rule” has also been included because of which, there is a need to collect and transfer the transaction information of the customers by VASPs. GFSC also recommends to consider virtual assets as a property, proceeds, funds, or assets.
Under these latest guidance by GFSC, VASP will be required to capture and maintain the transactions record. Along with this, companies are also required to update the potential investors and customers are on risks around the virtual assets. Albert Isola, Minister for Digital and Financial Services has said that through these updated guidance, the territory will be able to comply with the global regulations. He also believes that these updated guidance will also work towards the development of regulatory framework of DLT providers.
Consultation Process Started Previous Year
Incidentally, the consultation process regarding these regulations started not too long ago; in fact, it began last year. It has included GFSC, Gibraltar Association for New Technologies, and DLT provider licenses. It is revealed that there are 13 licensed DLT firms across the territory. These firms include Huobi, Xapo, Gnosis and many others. It has been noticed that the Gibraltar has the best environment for crypto industry as they have quite an open and advanced regulations for cryptocurrencies.