GIBRALTAR Law and Practice Contributed by: Aaron Payas, Jeremy Requena, Jerome Compson and Reece Atkinson, Hassans
ted by means of a database system or through virtual asset arrangements. This means that using DLT to store or transfer value on behalf of others, when done by way of business in or from Gibraltar, is treated as a regulated activity, such as: custodial virtual asset wallet providers, spot virtual asset exchanges, OTC/brokerage desks, and stablecoin offerings. In relation to POCA, under the RFB Regulations (defined at 1.1.1 Evolution of Uses of Blockchain ) the GFSC must maintain a register of relevant financial businesses that receive “proceeds in any form from the sale of tokenised digital assets involving the use of DLT”. Furthermore, the DLT Regulations made under the FSA, together with the general DLT guidance notes, underpin Gibraltar’s crypto-asset regulatory frame- work, which is built around ten core principles, ranging from customer care to honesty and integrity. Whilst there is no general blanket prohibition concern- ing activities and products in crypto-assets, the FSA prohibits any person from carrying on regulated activi- ties by way of business in Gibraltar unless the person is either authorised or exempt. New Regulation In 2026, the GFSC is working to transition firms cur- rently registered under the RFB Regulations to licens- ing under the DLT Framework. This consolidation is expected to streamline regulatory coverage and bring VASPs that currently sit within the POCA Registration perimeter under the full supervisory scope of the DLT Framework. 2.3 Regulated Firms and Legal Wrappers In Gibraltar, the DLT Framework is activity-based. It applies where a person or firm uses DLT to store or transmit value belonging to others. Whilst this could capture an investment fund structure, a fund which invests in crypto-assets on its own account is unlikely to be captured by the DLT Framework. In practice, most crypto funds in Gibraltar do not fall within scope of the DLT Framework.
The requirement to register with the GFSC under the RFB Regulations does not apply to a fund which is subject to supervision by the GFSC. 2.4 Token Issuance There is a viable crypto-asset issuance industry in Gibraltar. In relation to the requirements to launch a crypto-asset from Gibraltar, an issuer will have to reg- ister with the GFSC as a VASP under the RFB Regula- tions. For a firm to be registered, it must: • carry on the activity by way of business (ie, provid- ing products and/or services to clients in return for remuneration); • have a registered office in Gibraltar; and • appoint a locally based Money Laundering Report- ing Officer. Although there are no formal white paper require- ments equivalent to those under the EU’s Markets in Crypto-Assets Regulation, issuers are expected to provide clear and accurate information to purchas- ers as part of their AML/KYC obligations. In practice, the GFSC expects registered token issuers to demon- strate robust processes for verifying participant iden- tities, assessing suitability, and disclosing material risks. Where a token’s characteristics bring it within the definition of a financial instrument or a transferable security under the FSA, prospectus-related require- ments under Part 19 of the FSA may also apply. 2.5 Market Abuse In Gibraltar, the market abuse framework, consisting of three prohibited behaviours, is located within the FSA. Prohibited Behaviours • Insider dealing – committed by an insider who uses inside information to acquire/dispose of financial instruments, amend/cancel prior orders, submit/ modify/withdraw auction bids, or recommend/ induce others to do so. • Unlawful disclosure – committed when an insider reveals such information outside normal employ- ment/profession/duties or passes on known inside- based recommendations.
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