October 17th, 2018
Following the passage of Gibraltar’s modern blockchain laws, Coinfloor (the oldest crypto-firm in the U.K) applied for licensing and reports indicate that it proved itself worthy of the license. According to its website, the exchange was bestowed with an in principle authorization to carry out its operations as a ‘Distributed Ledger Technology (DLT) provider.’
Like with the move to legislate on the gambling sector, the move by Gibraltar to regulate its crypto industry is a bold step and a first in Europe. It mirrors the U.K.’s commitment to exploration of technological innovations. It is the latter on which Coinfloor capitalized and is the first exchanger to earn the license.
Coinfloor’s CEO, Obi Nwosu revealed to news sources that its exchange platform was well tried and tested on nine working principles that fintech startups have to pass. These include Anti-Money laundering (AML) and know-your –customer (KYC) protections. In addition, the company was required to prove that it had in place a robust anti-cyber-attacks framework to avert such foreseeable attacks.
Focus on Quality rather than Quantity
Despite the move, the company concedes that 2018 has seen a bearish market trend in crypto-prices. Owing to this lessened demand, Coinfloor has had to lay off about 40 of its employees. Obi Nwosu noted that though not desirable, restructuring had to be done for cost-cutting purposes.
The above notwithstanding, the CEO indicated that they were impressed by the fact that the legislations have been in the works for a long time. He lauded the legislation as well-thought out, well considered and focusing on quality as opposed to quantity.
Competition from Malta
Due to the U.K.’s foreign territories stance on low taxes for corporations, betting firms and casinos have taken to such territories including Gibraltar.Simply as they did with on-line playing, Gibraltar have taken the lead in the case of legislating the virtual forex and blockchain startup house.
The gains made are however threatened by the Brexit which will see Gibraltar exit from the European Union. The future of its performance in the cryptos’ sphere is bleak which could be taken advantage of by nations such as Malta.
Malta has highly enabling laws on digital currencies in a bid to entice startups to its territory as well as checking its competitors. Fintech pundits have warned that Malta will present itself as the most appropriate hub for blockchain startups. These corporations are reeling over the substantial uncertainty of how Gibraltar’s Brexit.
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