Gibraltar takes centre stage for ICO regulations


Last year (2017) witnessed an enormous number of Initial coin offerings (ICO), with over $3.7 billion was raised through ICO’s last year, up from a mere $100 million in 2016, an astronomical jump that set off alarm bells among central bankers and governmental institutions.

This paved the way to an enormous influx of capital from all wealth classes. Opposed to IPO where investors are requires to have financial knowledge and a licensed broker in order to participate.

ICO’s eradicate the barrier to entry and allows any individual investor over the age of 18 years old, to participate in an ICO.  This is result is allowing for the greatest wealth distribution that human history has ever seen. Any one has the chance to contribute and benefit from these disruptive technology projects, which are set to totally transform all of our industries and  for that matter our daily lives.

On the contrary it is not all honey and milk, there are dangers and negatives to ICO’s just like for anything else.  This are factors such as ill intentioned ICO’s, which are a pyramid scheme, and are set up with fraudulent intentions. There are nearly daily examples still happening, with ICO projects shutting down there websites, after collective a hefty amount of Ethereum, leaving the investors helpless and in the dark.

This is why ICO regulations are necessary in order to halt this criminal activity and protect the investors with the highest amount of protection. Providing reassurance to the investors on the safety and compliance of their investments.

One country has stepped forward to address the ICO regulation issue, and that is Gibraltar, they will be introduce the world’s first regulation for initial coin offerings.

"One of the key aspects of the token regulations is that we will be introducing the concept of regulating authorized sponsors who will be responsible for assuring compliance with disclosure and financial crime rules," said Sian Jones, a senior adviser to the GFSC.

The regulators will establish disclosure rules that require adequate, accurate and balanced information to anyone buying tokens, the government and Financial Services Commission said in a joint statement.

It blazed a trail in January by introducing the world’s first bespoke license for “fintech” firms using the blockchain distributed ledger technology that underpins ICOs.

“We remain fully committed to ensuring that we protect consumers and the reputation of our jurisdiction,” Said Albert Isola, Gibraltar’s commerce minister.

Gibraltar’s move is being closely watched by regulators from across the world, including Britain and Singapore, who may come forward with their own rules.




Bogdan Maslea