The financial sector of Gibraltar Territory risks reputational damage along with diplomatic sanctions, just in case there occurred a failure of crypto hub complex regulations. On the coast of the southern Mediterranean, the GSX or Gibraltar Stock Exchange, its quietly making preparations for the corporate takeover, which will have, for the former naval garrison, global consequences.
The peninsula regulators, they are busy reviewing proposals that will be prompting Valereum, the blockchain firm, to buy the exchanges in the upcoming year. It means the overseas territory of the British, it can soon host the world’s 1st integrated bourse, wherein it will be possible to trade conventional bonds alongside cryptocurrencies like dogecoin and bitcoin.
Why is this a bold move?
It’s because for the territory of around 33,000 people, wherein the financial sector, that is accounts for roughly 1/3rd of the £2.4 billion Gibraltar economy, gets overseen by the regulators. If everything goes according to plan, there is a chance that this enclave will become a hub for global cryptocurrency, but if it fails, reputational damage together with diplomatic sanctions will threaten the economy.
On the one hand, where UK and China banned/openly warned against investments within crypto, Gibraltar seems to have been committed to regulating cryptocurrencies formally in the attempt to future-proofing status of the territory as the financial hub.
Minister of digital, financial services and public utilities of Gibraltar, Albert Isola, said that ‘While Gibraltar was a tax haven 20 years ago, the territory has now overhauled its tax and information sharing policies. The introduction of crypto regulation is having a similar effect: rooting out bad actors and providing assurance to investors.’