Gibraltar´s approach to Blockchain, Distributed Ledger Technology, and Cryptocurrency

1. Gibraltar’sapproachtoBlockchain,DistributedLedger
TechnologyandCryptocurrency
Joey Garcia
Partner: Fintech & Financial Services
www.gibraltarlawyers.com

2. WhatarewedoinginGibraltar?
• Background:Gaming–historyandreplication?
• StepoutoftheSandbox
• Principlesbased,outcomesfocused.Notrulesbased
• Operatorsandintermediaries.Technologyneutral
• Transferandstorageofvaluebelongingtoothers
• Aninternetofvalue?

3. Principlesbased,notrulesbased

4. DLTRegulationprinciples
1. A DLT firm must conduct its business with honesty and
integrity;
2. A DLT firm must pay due regard to the interests and needs
of each and all of its customers and must communicate with
its customers in a way which is fair, clear and not misleading;
3. A DLT firm must maintain adequate financial and non-
financial resources;
4. A DLT firm must manage and control its business effectively,
and conduct its business with due skill, care and diligence,
including having proper regard to risks to its business and
customers;

5. 5. A DLT firm must have effective arrangements in place for
the protection of client assets and money when it is
responsible for them;
6. A DLT firm must have effective corporate governance
arrangements in place;
7. A DLT firm must ensure that all systems and security access
protocols are maintained to appropriate high standards;
8. A DLT firm must have systems in place to prevent, detect
and disclose financial crime risks such as anti-money
laundering and countering terrorist financing (AML/ CFT); and
9. A DLT firm must be resilient and must develop contingency
plans for the orderly and solvent wind down of its business.

6. GFSCRecent‘Statement’inrespectoftokenSales
• Application of principles to token sales?
• Sponsor/Listing regime?

7. BANKING:Transactionmonitoringandreporting:
NewTechnology,newdata

8. Whatare(someof)therisks
• Marketrisk
• Regulatoryandtaxationuncertainty((jurisdictionalrisks)
• Securityrisks
• Unclear/undefinedrelationships/counterpartyrelationships
(impliedobligations?)?
• Fiduciaryresponsibilitiestotokenholders
• Limitedduediligence
• Badactors
• Speculation
• Marketabuse

9. Whataboutthefuture?
• Increasinglypopular(morenon-blockchaincompanies)
• Improvementsintechnology,security,disclosureand
development
• Newtoolsforcomplianceandgovernance
• Newregulatoryframeworks(Gibraltar)
• Tokensasanassetclass?,tokenbasedeconomy?Tokenisationof
securitiesandfunds?

10. GIBRALTARBUSINESSES/Clients: Some
examples

11. Thank you for your time
Questions?
Ask our FinTech Team
This presentation has been prepared for general information purposes only and is not legal advice, is not to be acted on as such, and is current only as at the date stated on
the first slide. No reliance should be placed on its contents and the views expressed therein are those of the authors and may not reflect those of ISOLAS LLP.
Interpretation of how the relevant legislation could be applied is ultimately a matter for the courts and/or applicable regulatory authorities and/or law enforcement agencies
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consequence of relying on it, is assumed by ISOLAS LLP.
Contact us: info@isolas.gi / Tel +350 2000 1892 / Portland House, Glacis Road, PO Box 204, GX11 1AA, Gibraltar
Joey Garcia
Partner
joey.garcia@isolas.gi
Jonathan Garcia
Partner
jonathan.garcia@isolas.gi
Karan Aswani
Associate
karan.aswani@isolas.gi
Michael Adamberry
Associate
michael.adamberry@isolas.gi