Darico Ecosystem Coin: Gibraltar: a model for nurturing crypto startups

ioc gibraltar cryptocurrency blockchain

Until now, most countries and governments have been working hard to control and limit the spread of cryptocurrencies. In the UK, a cryptocurrency task force was launched in order to “manage the risks around Cryptoassets.” In the US, the government has been heavily criticised for cracking down on cryptocurrency under the guise of preventing money laundering.

Contrary to this, one British Overseas Territory has been paving the way for a forward-thinking approach to cryptocurrency. Gibraltar recently brought into play new rules to cover the commercial use of any Distributed Ledger Technology (DLT), or Blockchain, as it is more commonly known. This model is intended to nurture the development of new crypto startups and create a safe and legal space for cryptocurrency exchanges, free from legal ambiguity.

Over $3.5 billion was raised through ICOs in 2017 which far exceeds the amount raised through venture capitalism in the same period. Gibraltar is keen to take advantage of this by establishing itself as the location of the first licensed and regulated blockchain stock exchange.

Benefits for token sellers

The biggest challenge facing token sellers during an ICO is the legal ramifications of doing business with individuals all around the world. As the ICO takes place online, ICOs can attract customers from anywhere. This can lead to legal issues when dealing with a number of different financial institutions and territories, each with their own rules. By establishing a clear framework and regulating the ICO industry, Gibraltar could succeed in creating the first EU-regulated stock exchange for DLT.

Companies and startups established in Gibraltar must adhere to nine principles, published in the Gibraltar Finance whitepaper in 2017. This level of transparency and forward-thinking is unlike anything to date. By regulating this field, token sellers have the reassurance that they are only selling tokens to a pool of AML/KYC-cleared buyers. Failing to carry out these checks can land companies in hot water, so it is reassuring for token sellers to know they are covered.

Benefits for investors

Sellers aren’t the only ones to benefit from increased regulation and monitoring. Buyers can be reassured that the tokens they are purchasing are from vetted organisations, thereby reducing the risk of scams. It isn’t only sellers who can find themselves in trouble as a result of the murky and contradictory rules surrounding cryptocurrencies and ICOs. Every country has its own rules for how ICOs should be treated and this can have a huge impact on your tax liabilities. By using a whitelisted GBX (Gibraltar Blockchain Exchange) account, buyers can trade with confidence knowing that their investments are safe and they will have easy access to their funds.

It’s clear that fighting back against cryptocurrency, or attempting to govern it with the same rules used for established financial institutions, is futile. Governments and companies need to step up and support the future of cryptocurrencies. Gibraltar has taken a step in the right direction by regulating its use within the country and by applying the nine principles which will go a long way to keep buyers and sellers safe. Companies like Darico are quick to make the most of this opportunity for raising funds in a safe and regulated environment by creating close ties with the country.

Gibraltar: a model for nurturing crypto startups was originally published in Darico on Medium, where people are continuing the conversation by highlighting and responding to this story.

Original article was created by: Darico Ecosystem Coin at news.darico.io

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency or ICO.

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