1. “AI will become sentient around the same time
that conference room A.V. works flawlessly every time”
- Jeff Garzik

2. Recent developments in the area of Fintech & DLT Gibraltar’s future in DLT/blockchain
Siân Jones

3. The future's bright, the future's Orange
Created by WRCS for Orange Personal Communications Services Ltd
07 December 2018

4. 2015: Cryptocurrency working group 2 reports
2016: GFSC charged with developing regulations
Q4 2016: Expanded to distributed ledger technology
Q2 2017: Consultation paper published
October 2017: DLT Regulations became law
1 January 2018: DLT Regulations came into force
History of DLT in Gibraltar
07 December 2018

5. Pioneering method for regulating businesses that use a nascent, evolving technology
07 December 2018

6. NOT soft or light-touch regulation Just as robust
Purpose-designed
Outcomes-focused
Principles-based
NOT soft or light-touch regulation
Just as robust
Regulated to same standard as other financial services businesses
Appropriate, proportionate & relevant
New type of financial services regulation
Applied on a case-by-case basis
07 December 2018

7. Carrying on by way of business, in or from Gibraltar, the use of distributed ledger technology for storing or transmitting value belonging to others
07 December 2018

8. Outcomes Protect consumers Protect Gibraltar’s reputation
Good for Gibraltar’s economy
07 December 2018

9. Nine principles Honesty & integrity Fairness Resources
Systems & controls
Protection of customer assets
Corporate governance
Systems & security
Financial crime
Orderly & solvent wind-down
THE REGULATORY PRINCIPLES
1. A DLT Provider must conduct its business with honesty and integrity.
2. A DLT Provider must pay due regard to the interests and needs of each and all its customers and must communicate with them in a way that is fair, clear and not misleading.
3. A DLT Provider must maintain adequate financial and non-financial resources.
4. A DLT Provider must manage and control its business effectively, and conduct its business with due skill, care and diligence; including having proper regard to risks to its business
and customers.
5. A DLT Provider must have effective arrangements in place for the protection of customer assets and money when it is responsible for them.
6. A DLT Provider must have effective corporate governance arrangements.
7. A DLT Provider must ensure that all of its systems and security access protocols are maintained to appropriate high standards.
8. A DLT Provider must have systems in place to prevent, detect and disclose financial crime risks such as money laundering and terrorist financing.
9. A DLT Provider must be resilient and have contingency arrangements for the orderly and solvent wind down of its business.
07 December 2018

10. Broad range of use cases & business models
∼30 applicants
Broad range of use cases & business models
∼50% currently having applications assessed
Expecting to grant first licences: Summer 2018
07 December 2018

11. I C O
Initial Coin Offering
07 December 2018

12. Offering of tokenised digital assets to the public
Public token offering
Means of raising finance
Typically by early-stage startups
Without issuing securities
Now being using for later-stage financing
… and by established enterprises
Largest ICO to date raised $4bn
07 December 2018

13. September 2017: Public statement December 2017: Discussion paper
Use of PTOs exploded in 2017
September 2017: Public statement
December 2017: Discussion paper
February 2018: Press release
March 2018: Policy document
March 2018: Added to Proceeds of Crime Act
Q2 2018: Expected legislation
07 December 2018

14. Token regulations Complement DLT Regulations
Primary market promotion, sale & distribution
Secondary market conduct
Investment & ancillary services
07 December 2018

15. The future's bright, the future’s DLT
07 December 2018

16. The future's bright, the future’s red and white
07 December 2018