THE British Territory of Gibraltar are to be the first in setting more strict regulations on ICO’s; with dedicated rules for the cryptocurrency sector whose fast growth has triggered concern among central bankers.
Gibraltar’s government and Gibraltar Financial Services Commission (GFSC) said lawmakers will discuss a draft law in coming weeks to regulate the promotion, sale and distribution of tokens connected with the British overseas territory.
Sian Jones, a senior adviser to the GFSC, said: “One of the key aspects of the token regulations is that we will be introducing the concept of regulating authorised sponsors who will be responsible for assuring compliance with disclosure and financial crime rules.”
There has been growing support from central bankers to have Cryptocurrencies and ICO’s regulated to protect consumers. Despite growing evidence showing a wide range of benefits of these recent financial innovations.
Over $3.7 billion was raised through ICOs last year, up from less than 82 million euros in 2016, a leap that has rung alarm bells among central bankers as some firms rush to issue tokens before new rules are introduced.
Eye’s from across the world are watching their next move including mainland Britain and Singapore, who may adopt rules that mirror Gibraltar’s in the coming months.
Jay Clayton, head of the U.S. Securities and Exchange Commission, said on Tuesday that tokens are securities and subject to the same investor protection rules as share offerings.