The Financial Services Commission (GFSC) and government of Gibraltar have announced that they shall develop a draft law in the coming weeks for regulating Initial Coin Offerings in the British overseas territory as reported on 9th of Feb by the Reuters.
The draft law shall target the promotion, sale and distribution of virtual tokens in the Gibraltar territory. The lawmakers are claiming that this set of regulations which shall be developed especially for ICOs is going to be the first of its kind in the history of cryptocurrencies.
Gibraltar is a British Overseas Territory and headland, on Spain’s south coast.
Sian Jones, one of GFSC’s senior advisors revealed that introducing the concept of “authorized sponsors,” which is expected to be “responsible for assuring compliance with disclosure and financial crime rules,” is one of the primary aspects of the Gibraltar ICO regulations.
The government and Financial Services Commission also announced to Reuters that the draft law shall establish requisite disclosure rules requiring ICO projects to deliver, “adequate, accurate and balanced information to anyone buying tokens.”
Compared to $100 million raised in 2016, more than $3.7 billion was secured through ICO fundraisers internationally in 2017. This brisk expansion of ICO market has been reported to have provoked the regulators of Gibraltar to take immediate action. GFSC had issued an official statement in September 2017 warning investors about the “highly risky and speculative” nature of ICO fundraising campaigns in the midst of increasing number of ICO funding’s.
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