During the past two years, the initial coin offerings (ICOs) market has drastically expanded, which has caused numerous financial regulators all over the globe to take action. The latest officials to join the movement is Gibraltar’s government and the market regulator of the territory. What will be included in the upcoming Gibraltar ICO Regulations?
12 February, AtoZForex – The government of Gibraltar and the Gibraltar Financial Services Commission (GFSC) have made a joined announcement. The officials have decided that the initial coin offerings (ICOs) market needs a bit more oversight in the British overseas territory.
Upcoming Gibraltar ICO Regulations to Set Disclosure Rules
Thus, the Gibraltar authorities have informed the public that they are working on the development of draft law that will set out the regulations for ICOs across the country. Reportedly, the draft law is aiming to regulate the advertisement, distribution, and sale of digital tokens on the territory of Gibraltar. In fact, the authorities claim that this law will be the first ever set of rules that are specifically designed to regulate ICOs.
Following on this, there is one particular aspect of the upcoming Gibraltar ICO regulations. The framework will introduce the concept of “authorized sponsors,” who are supposed to be “responsible for assuring compliance with disclosure and financial crime rules.” This is according to Sian Jones, one of GFSC’s senior advisors.
According to the online reports, quoting the government and Financial Services Commission, the draft of Gibraltar ICO regulations will also set out the rules that will oblige ICO projects to provide “adequate, accurate and balanced information to anyone buying the token.”
Global ICO Market Expansion
Moreover, some of the media reports state that there was over $3.7 billion secured in ICO fundraisers globally in 2017. Back in 2016, this figure stood at $100 million. Such rapid advancement of the ICO markets might have appeared as a reason for global regulators, including Gibraltar’s, to take initiative.
Back in September 2017, Gibraltar’s regulatory body has issued an official statement that has cautioned investors of the “highly risky and speculative” nature of ICOs.
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