In a press release issued jointly with the Gibraltar Financial Services Commission (GFSC) on 12 February 2018, the Government of Gibraltar announced that it is in the process of drafting legislation to regulate initial coin offerings (ICOs) in Gibraltar.      

The legislation will regulate “the promotion, sale and distribution of tokens by persons connected with Gibraltar”.  This will be achieved, in part, by requiring the disclosure of “adequate, accurate and balanced” information to prospective purchasers of tokens in ICOs.  The legislation will also include measures that seek to address money laundering and terrorist financing concerns.  According to a senior advisor at the GFSC, a key aspect of the legislation will be the regulation of “authorised sponsors”, who will be tasked with the responsibility of ensuring that the provisions relating to disclosure of information, anti-money laundering and terrorist financing are complied with.

In addition, the legislation will include provisions regulating “secondary market activities relating to tokens carried out in or from Gibraltar” and the provision of investment advice relating to tokens by way of business, in or from Gibraltar.

In the same press release, the Government of Gibraltar announced that the bill is likely to be tabled in Parliament in the second quarter of 2018.

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