Cryptocurrencies continue to attract the attention of investors, entrepreneurs and governments around the world. In recent years, one of the key aspects has been the need to regulate crypto assets in order to ensure security, transparency and trust in this new type of economic activity. Gibraltar, a small territorial entity in the south of Spain, has set a course to create a favorable legal environment for the crypto business by offering special licenses.
In Gibraltar, the licensing of cryptocurrency companies began in 2018, when the DLT (Distributed Ledger Technology) regime was introduced, which is aimed at companies working with distributed ledger technologies. The main goal is to create a safe environment for both companies and their customers. The license obtained in Gibraltar allows companies to legally operate in the field of cryptocurrencies, providing services such as the exchange, storage and transfer of cryptocurrency assets.
Advantages of Registering a Cryptocurrency Business in Gibraltar
Gibraltar attracts entrepreneurs not only with its sunny shores, but also with loyal tax legislation, a transparent legal system and favorable conditions for conducting international business. The main advantages of the Gibraltar crypto license:
- Regulation at the international level. The Gibraltar license certifies that the company complies with international standards in the field of safety and transparency of activities.
- Government support. Gibraltar actively supports the development of the cryptocurrency sector and DLT technologies.
- Attractive tax policy. Gibraltar has no value added tax (VAT), as well as low corporate tax rates, which makes it attractive for cryptocurrency companies.
- The fast process of obtaining a license. The registration and licensing process in Gibraltar is relatively fast and less bureaucratic compared to other jurisdictions.
The process of obtaining a license
The process of obtaining a cryptocurrency license to run a cryptocurrency business requires careful preparation and compliance with a number of criteria set by the local regulator. The company must submit documents and evidence of its activities, which will be thoroughly reviewed by the Gibraltar Financial Services Commission (GFSC). Upon successful completion of all verification stages, the company will receive the right to engage in cryptocurrency activities legally.
The main stages in the process of obtaining a license for cryptocurrency:
- Preparation of documentation: Collection of all necessary documents, including a business plan, risk management policy, description of internal procedures and security systems.
- Application submission: Registration and submission of the application together with the documentation to the GFSC.
- Compliance check: GFSC conducts an audit of the submitted materials, assessing the company’s compliance with the established requirements.
- Payment of the license fee: After the approval of the application, the license fee must be paid.
- Obtaining a license: In case of successful completion of all checks, the company receives a license to conduct cryptocurrency activities.
Each of these steps requires attention and precision, as any errors can delay the licensing process or even lead to rejection.
Difficulties and risks
Obtaining a cryptocurrency license involves some difficulties and risks that are important to consider when planning a business in this jurisdiction. Firstly, the licensing process can be quite complicated and require significant time and resources to prepare all the necessary documents. In addition, strict compliance requirements can create additional difficulties for companies that do not have experience working in such regulatory conditions.
In addition, political and economic instability can make adjustments to the conditions for conducting a cryptocurrency business. Changes in legislation, for example, stricter regulation, may affect the stability and predictability of companies’ activities. This requires business flexibility and willingness to adapt to new conditions, which may be accompanied by additional costs and risks.
A cryptocurrency license in Gibraltar provides a number of significant advantages for those who wish to conduct a cryptocurrency business internationally. Obtaining a license in Gibraltar can be your chance to expand your business and enter new markets.