Gibraltar Working on Draft Law for “World’s First” ICO Regulations


Lawmakers and financial regulators in the British Overseas Territory of Gibraltar are working on a draft legal framework aimed specifically at regulating initial coin offerings (ICOs), which they claim will be the first such law in the world.

The Gibraltar Financial Services Commission (GFSC) are working with lawmakers from the overseas territory to regulate the promotion, sale and distribution of digital tokens on the territory of Gibraltar, and aim to present the draft law in several weeks time.

According to a report by Reuters on Feb. 9, Sian Jones, one of GFSC’s senior advisors, said that one of the core ideas behind Gibraltar’s new legal approach to ICO regulations is the concept of “authorized sponsors” responsible for “assuring compliance with disclosure and financial crime rules.”

The regulations will stipulate that companies looking to launch an ICO provide “adequate, accurate and balanced information to anyone buying tokens.”

According to data gathered by ICORating, over 800 ICOs raised a combined total of nearly $6.2 billion globally in 2017. ICOs proved to be a popular method of raising money for both aspiring companies and fraudsters alike, and major countries around the world are looking at different ways to regulate this emerging industry.

Latest news

Operation Cryptosweep Targets ICO and Crypto Scams in US and Canada US and Canadian securities regulators joined forces to launch a far-reaching crackdown on initial coin offering (ICO) and cryptocurrency scams across North America in an operation dubbed “Cryptosweep.”
ICORating Technical Audit of Ethen ICORating has conducted a full technical audit of Ethen, a cryptocurrency and altcoin trading platform, analyzing the smart contract source code for potential vulnerabilities.
ICORating to Speak at Crypto Forum for Hotcoins in Seoul ICORating will speak at the Crypto Forum for Hotcoins, set to take place in Seoul on May 24 at the Le Meridien Seoul Hotel. The forum will feature a startup pitch competition as well as coverage by South Korean business news channel SBS CNBC.