Partners Joey Garcia and Jonathan Garcia, who form ISOLAS' expert Distributed Ledger Technology (DLT) team, have once again contributed to the Gibraltar chapter of the Global Legal Insights Blockchain & Cryptocurrency Regulation.
The GLI guide aims to analyse and interpret the state of regulation in the blockchain and cryptocurrency sector, covering government attitude and definition; cryptocurrency regulation; sales regulation; taxation; money transmission laws and anti-money laundering requirements; promotion and testing; ownership and licensing requirements; and mining in 20 jurisdictions.
The Gibraltar chapter examines the uniquely progressive attitude of the jurisdiction's approach to the rising blockchain and cryptocurrency sector, highlighting its expanding market and offering valuable information for individuals and businesses wishing to invest and trade within the crypto field in Gibraltar.
The partners discuss the amendment made by the Financial Action
Task Force ("FATF") of their 2012 'Recommendations on
International Standards on Combating Money Laundering and the
Financing of Terrorism & Proliferation'. The update in
relation to new technologies (Recommendation 15) now includes
virtual assets, and virtual asset service providers
("VASPs"), requiring the latter to be regulated for
AML/CFT purposes, as well as licensed or registered and subject to
effective systems for monitoring and ensuring compliance with the
relevant measures called for in the FATF Recommendations.
In an Interpretive Note to Recommendation 15, the FATF offered further clarification on the FATF standards that apply to these virtual assets and VASPs (the "INR 15") as well as "VASP Guidance", leading jurisdictions to implement measured in order to comply with both; measures which Gibraltar adopted in January 2018, over a year prior to their publication in June 2019. However, as Joey and Jonathan note, Gibraltar's existing DLT Framework already exceeds the FATF Standards with reference to the licensing and registration of VASPs.
The Gibraltar Chapter, published in GLI - Blockchain & Cryptocurrency Regulation 2021, is available to read online at: https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/gibraltar
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