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.