Gibraltar is preparing to introduce the world’s first regulations for ICO. The government and Gibraltar Financial Services Commission (GFSC) said lawmakers will discuss a draft law in coming weeks to regulate the promotion, sale and distribution of tokens, Reuters reported.
“One of the key aspects of the token regulations is that we will be introducing the concept of regulating authorised sponsors who will be responsible for ensuring compliance with disclosure and financial crime rules,” said Sian Jones, a senior adviser to the GFSC.
The regulation 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.
Gibraltar is looking to boost its thriving financial services industry beyond gaming after Britain, along with Gibraltar, leave the European Union in 2019.
In January it introduced the world’s first bespoke licence 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 is also reviewing its rules for investment funds that involve cryptocurrencies and tokens.