Gibraltar Crypto Regulation

Is Cryptocurrency Legal in Gibraltar?

• Cryptocurrencies: Not considered legal tender
• Cryptocurrency exchanges: Legal, must register with the GFSC

Gibraltar is a global leader in cryptocurrency regulation: while cryptocurrency is not considered legal tender in the country, cryptocurrency exchanges are legal and operate within a well-defined regulatory and investor protection-focused framework. Gibraltar has a reputation as a low taxation environment: it does not impose capital gains or dividend tax on cryptocurrencies, and according to Gibraltar crypto regulation, exchanges are subject to a business-friendly 10% corporate income tax rate.

Gibraltar Crypto Regulation – Exchanges

In 2018, Gibraltar introduced its Digital Ledger Technology (DLT) Regulatory Framework after extensive engagement with the crypto industry. Under the framework, exchanges must register with the Gibraltar Financial Services Commission (GFSC) and demonstrate that they are meeting the “principles” of the DLT framework which include a strong focus on the detection and disclosure of money laundering and terrorist financing. In September 2020, Gibraltar crypto regulations were updated to better align with FATF recommendations, taking into account the higher risk factors associated with some virtual asset instruments.

Future Gibraltar Cryptocurrency Regulations

Gibraltar’s government is seeking to strengthen its position as a global leader by exploring further cryptocurrency regulation. In 2017, the GFSC issued a statement on the unregulated use of ICOs and suggested that it will monitor their ongoing use within the DLT Framework. Similarly, the commission’s Innovate and Create Team has been established to help businesses develop new products for the crypto-economy. In 2021, Gibraltar convened a Market Integrity working group to further define appropriate market standards for cryptocurrency exchanges in coordination with standards defined by other jurisdictions such as the UK and the EU.