Gibraltar Updates Distributed Ledger Framework to Align With FATF Crypto Regulations | Regulation Bitcoin News

The Gibraltar Financial Services Commission (GFSC) has updated its guidance notes for distributed ledger technology (DLT) providers to include recommendations for risk management, as well as clarify aspects around the issuance of digital assets.

In a statement released on September 17, the regulator said the new updates are part of an ongoing effort to adapt its regulatory framework to include the latest Financial Action Task Force (FATF) recommendations for virtual asset service providers.

How To Get Free Crypto  

Gibraltar, which has been criticized by the European Union for not doing enough to curb money laundering in the past, particularly in its DLT rules, describes the update as a “natural evolution of the defined regulatory principles.”

According to the GRSC, the guidance notes update the risk framework to “distinguish between virtual assets and virtual asset denominated instruments that are generally classified as higher risk and require additional factors or onboarding tests to be considered.”

Amendments to new token issuances prevent DLT providers from utilizing internally generated token reserves as part of its regulatory capital requirements. In total, the regulator has updated seven out of the nine guiding principles supporting the existing framework, launched in 2018.

Gibraltar’s Minister for Digital and Financial Services, Albert Isola, commented:

Prospective licensees must demonstrate a clear appreciation of the nine core principles underpinning the regulatory framework, covering areas such as corporate governance, capital adequacy, risk management, customer care, and in due course, market manipulation. Other essential prerequisites include thorough internal risk management strategies, robust corporate governance structures, and well-defined protocols, with secure checks in place to ensure the protection of clients’ assets is prioritised.

Currently, 13 DLT providers are licensed under the Gibraltar Financial Services Commission, including international platforms Etoro, Huobi, Xapo, and Bitso.

Coinbase Banner  

What do you think about Gibraltar’s updated DLT framework? Let us know in the comments section below.

Tags in this story
Albert Isola, Bitso, Blockchain, distributed ledger technology (DLT), eToro, European Union, Financial Action Task Force (FATF), Gibraltar, Gibraltar Financial Services Commission (GFSC), Huobi, virtual asset service providers., Xapo

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Go to Source
Author: Jeffrey Gogo

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.