Blockchain, the digital ledger technology behind bitcoin and other high flying cryptocurrencies, fired into action with a significant financial regulator on New Year's Day. Will others now follow?   

The Gibraltar Financial Services Commission’s, or GFSC's, regulatory framework for digital ledger technology came in to effect with the new year. The regulator has laid out nine principles for licencees designed to protect consumers and Gibraltar’s reputation.

Gibraltar firms which use blockchain to store or transmit value belonging to others, now must apply for a licence from the GFSC, the regulator said in a press release.

Asia Monitoring

Working closely with the financial services industry and the Government of Gibraltar means the GFSC is the first regulator to introduce a DLT regulatory framework.

Although a small jurisdiction by Asian standards, regulators across Asia-Pacific will no doubt be keeping a close watch on the roll-out, with a view to implementing their own versions. 

«We are really excited to finally welcome applications from digital ledger technology providers, the team expect to be very busy in the coming months, and are looking forward to working on some interesting and innovative ideas with applicants,» said Nicky Gomez, GFSC’s head of risk and innovation.