Gibraltar Stock Exchange Secures Regulatory Approval For Its Crypto Exchange

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The Gibraltar Stock Exchange (GSX) has secured regulatory approval for its blockchain subsidiary the Gibraltar Blockchain Exchange (GBX), the company announced in a blog post published last Thursday.

In the post, the GBX stated that it received a license from the Gibraltar Financial Services Commission (GFSC), the country’s financial regulator.

In its announcement, the GBX said that the license makes it the first stock exchange in the world to get such an approval.

As such, the regulatory green light allows GBX to “operate as a fully licensed provider of Distributed Ledger Technology (DLT),” the company announced in its post on Medium.

The exchange will, from now on, be regulated by the GFSC under island nation’s Financial Services Regulations Digital Ledger Technology (DLT) framework,

The GSX first launched its Blockchain Exchange subsidiary in July this year and tailored to operate as an “institutional-grade” platform for token sales and digital asset exchange.

The platform currently supports USD onboarding that will also trade against six crypto trading pairs, including top coins Bitcoin (BTC) and Ethereum (ETH).

The exchange will also offer users a chance to trade fiat against its native token, Rock (RKT). There are plans to provide further onboarding for fiat currencies to add to the U.S dollar.

Securing regulatory approval marks a “significant milestone” for the exchange and the global crypto industry that will greatly benefit from “a secure and regulated” market.

The development doesn’t come as a complete surprise given that it is Gibraltar, a country recognized as one of the leading blockchain and cryptocurrency-friendly destinations around the world.

The state and the GFSC became the first country to announce the formation of an ICO regulatory framework that saw over 200 ICO projects flock the country earlier in the year.

That has allowed blockchain companies setting up shop in the country to thrive.

In January, the GFSC made it mandatory for blockchain-based firms that “store or transmit value” to acquire regulatory approval by applying for a license.

Cowan lauded the island nation’s crypto-friendly stance, adding that its regulatory environment was both sustainable and geared towards promoting innovation in the sector.

Being granted the DLT license also caps an important period of sustained growth for the exchange, only months after it completed a full-scale public release this past July.

“From the very beginning we have sought to build a platform defined by stringent regulatory safeguards and effective risk-based controls, while promoting the sensible and sustainable development of the industry.”

Commenting on the approval, GBX CEO Nick Cowan said the country “has found the right blend of sensible and supportive regulation,” a move that positions it as “a lodestar for the global cryptocurrency space.”

Although GSX becomes the first stock exchange to get the GFSC license, it isn’t the first company to do so. Among cryptocurrency exchanges, digital asset platform Coinfloor became the first to do so when it received the license in October.


Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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