21 September 2020 | AtoZ Markets – Blockchain technology is becoming more popular due to its successful adoption in cryptocurrencies such as Bitcoin. Blockchain is a Distributed Ledger Technology that records organizational data in many databases. Blockchain is preferred because of its safety, security, and transparency.
GFSC Updates DLT Framework Guidance Notes
Gibraltar, a UK overseas territory, has a legal system that is relatively independent of the United Kingdom. It is paving the way for the regulation of crypto and DLT companies. Gibraltar's GFSC has updated blockchain guidance notes to assist DLT providers and protect customers.
GFSC is the regulatory body for the financial sector of Gibraltar. According to GFSC, the latest guidance note includes the risk framework to distinguish between virtual assets and products denominated in virtual assets and consider additional factors and onboarding tests.
The Note also highlights the protection of customer assets and funds, including "Contingency, Disaster Recovery, Crisis Management Plans." Head of DLT & Markets, William Gracia, said:
"My team and HM Government of Gibraltar have worked hard over the last few months, encouraging feedback where appropriate. We believe we have achieved a clear and helpful update benefitting both DLT providers and consumers.
"I'd like to thank the Gibraltar Association of New Technologies (GANT) for their support, as well as those DLT Providers and applicants who provided valuable feedback. I believe this is another step forward for Gibraltar's innovative financial services sector," added William Gracia.
Gibraltar first introduced the DLT framework in January 2018. Currently, the updated framework aims to work with this fast-paced technology. The Guidance Note also contains the latest FATF recommendations on Virtual Asset Service Providers (VASP) and "Travel Rules."
Albert Isola, Minister for Digital and Financial Services, commented: "Developing the DLT Providers Regulatory framework that has proved so successful to date. It is also a significant milestone in our regulations' evolution. We embark on the road to achieving ongoing FATF compliance. My thanks go to all parties involved in the delivery of these updates."
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