Gibraltar is highly sought after as an international tax haven. In addition, the Member of the European Union is highly respected by offshore professionals due to the development of the financial services sector and a favorable tax structure. The entire economy of Gibraltar is based on its status as an offshore financial services center. For several years now, this area has included blockchain technology. It would be surprising if such a popular destination were not represented in a country that stands out for its favorable laws. The regulator has issued numerous crypto license Gibraltar to blockchain operators.
The quality of the permit is confirmed by many years of experience. In addition, some of the world’s most famous cryptocurrency exchanges and new digital coins have chosen Gibraltar as their licensing jurisdiction. It confirms that Gibraltar is a suitable jurisdiction to obtain a cryptocurrency license. What are the features of this license? The Gibraltar regulator has created a unique, flexible framework for initial currency offerings, cryptocurrency exchanges, and digital wallet providers. Over the years, this jurisdiction has managed to maintain its credibility in the blockchain technology market and establish itself as one of the preeminent jurisdictions for registering and licensing cryptocurrency companies.
If you want to work legally in this jurisdiction, obtaining a cryptolicense is a must. Otherwise, your platform will be blocked, and the owner may have big problems. Cryptocurrency in Gibraltar is regulated by the GFSC and Innovate and Create Team. Each of these state bodies is responsible for its scope of work. So, DFSC issues licenses and monitors the functioning of companies that have received a work permit here, and Innovate and Create Team monitors the implementation of new crypto-economic projects. If you want to understand better the features of the regulation of the crypto industry, you can ask our specialists possible questions.
|Consideration Period||6 months|
|Application Fee||from 11 800 euros|
|Required Capital||24,000 euros|
|Annual License Fee||from 11 800 euros|
|Company Employees||at least two|
The cryptocurrency industry has long remained without full regulation. Starting in 2018, the jurisdiction of Gibraltar began to bring clarity to the management of cryptocurrency activities. The national authorities implemented the Distributed Ledger Technology Framework (DLT Framework) during this period. This framework contains licensing requirements for cryptocurrencies and other blockchain-based businesses. To date, Gibraltar continues to promote legislation aimed at the integrity of the crypto business and the implementation of blockchain-based products and services.
The Financial Services Act regulates DLT activities in Gibraltar. This legislative act is the main one in the country. Initially, the Law provided for nine basic principles of regulation.
However, the legislative action is supplemented by the 10th principle of regulating digital ledger technology (DLT). This principle aims to prevent and eliminate insider trading and manipulating prices and information. According to paragraph 10, each DLT supplier is obliged to conduct its economic activities in good faith so that the reputation of the market remains unchanged. The actions of crypto companies are further displayed and regulated through the Proceeds of Crime Act (PCA) and the Guidance on Control Systems. The legislation was created to prevent using the financial system for money laundering, terrorist financing, and other financial crimes.
By obtaining a license for crypto-currency activities in Gibraltar, companies receive several advantages:
Obtaining a license for any activity in the crypto industry, the company follows many rules and principles listed below:
To carry out constant internal monitoring and audit of operations with crypto assets.
Any company is primarily interested in obtaining a crypto license in Gibraltar. The distinguishing feature of this procedure is that the mechanism is very efficient and well-structured. In addition, there are no hidden conditions that could cause discomfort in the future. The only negative is the license cost, which may vary depending on the nature of the licensed activity. The amount of the state fee can range from 11,800 to 35,000 euros. The application is considered for up to three months. The application process consists of several steps:
Below, you can learn more about all the stages of obtaining a Gibraltar License for cryptocurrency activities.
At the first stage, a Gibraltar cryptocurrency company that plans to obtain a license must initiate contact with the GFSC. To do this, a potential candidate should contact the GFSC Risk Management and Innovation team. This stage also discusses the type of economic activity envisaged, the business model, and their proposals for the application. Only companies that use DLT to transfer or store valuables can proceed to the second step of the license application process.
The initial assessment is carried out within two weeks. A task force categorizes the applicant according to the inherent risks and complexity of the proposed business model and activities. In determining the inherent risks and complexity of the proposed business model and activities, the following factors are considered:
After passing the second stage and the initial assessment, the company receives all the information and further step-by-step instructions. Some details may need to be adjusted, as well as the filing of additional documents and the payment of the prescribed full filing fee. The expected annual fee is also communicated to the customer at this stage. Once the notification requirements are met, the company proceeds to the last step and can apply for a DLT provider license.
At the last stage, companies must submit comprehensive information and supplement the application with data on financial forecasts, the existence of a business plan, proof of applicable rules, and more. Each founder must additionally provide the following documents:
After all data has been transferred, company representatives should make a presentation to the GFSC. Any specific requirements based on the nature and complexity of the proposed business activity will be communicated during the initial evaluation of the application. Typically, a presentation should cover the following areas:
The presentation is one of the most critical stages for obtaining a license. The authority can only grant a license to a DLT provider if the applicant provides sufficient evidence that it will comply with the regulatory principles. Therefore, the applicant must confirm their intention to operate and be able to pay the established annual fees, which also depend on the complexity of the business and its inherent risks. The company undertakes to inform the licensing authority of any changes.
A company that has received the appropriate crypto currency exchange license must pay a fixed annual fee, which also depends on the complexity of the business and its inherent risks. The annual fees are as follows:
In addition, each company must adhere to all established requirements. Otherwise, the license may be canceled without the right to refund.
If you have chosen this jurisdiction to conduct your business, you will not have any particular problems. Since the country’s government is interested in developing blockchain projects, this sets the most simple regulation rules.
First, you must register an organization in this jurisdiction or buy a ready-made company. You need to think carefully about the name of the company, and it must be unique. We advise you to come up with several options, check their uniqueness, and only after that stop at one name.
You also need to determine the legal form and collect the necessary package of documents.
The easiest way to register activity in Gibraltar is to open a private limited company, which can be created and registered within a week.
Particular attention must be paid to the choice of services you will provide and the development of software.
Required documents for registration of a Limited Liability Company:
With a crypto license, your company can carry out the following activities:
Only companies registered in Gibraltar can apply for a license.
It is worth saying that if you refuse to obtain a license, your company will be recognized as a fraud and will not be able to operate in this territory.
You also need to open an account at a local bank, which often causes problems. Many crypto organizations get rejected because banks consider this business very risky. If you want to avoid having problems with this, you should seek the help of specialists.
Many organizations choose this particular jurisdiction due to the lowest tax rate in Europe – only 10%, while many income types are not taxed. It was because many organizations are registered here today that want to obtain a cryptocurrency license in Gibraltar.
Crypto regulations distinguish 3 main categories of organizations:
As you can see, the choice of a category depends on your company’s activities. If you have a small startup that uses blockchain technology, you fall under the first category, and if you have a significant exchange, you are under the third.
The amount of the fee depends on the category. Suppose you need help understanding which type your company belongs to. In that case, we advise you to seek help from lawyers who will answer all questions and suggest what you need to pay attention to, taking into account the characteristics of your organization. After you open your company, you need to get a work permit.
As already mentioned, this jurisdiction does not impose complex requirements for crypto organizations that want to obtain a work permit here. If you head to work honestly and openly, there will be no problems. Among the main requirements are the following:
The government of this jurisdiction understands that the crypto business is associated with many risks. Therefore it wants to ensure that customers’ interests are protected in any case, no matter what challenges your company faces. If you install a sound security system for personal data and financial assets, then there should be no problems with licensing or work in the future. Also, you should think carefully about the organization’s business model and management system. People must fill critical positions with relevant work experience, a good education, and an understanding of how your project should function. This jurisdiction is suitable for both large corporations and small startups. It is due to the absence of requirements for the authorized capital and the number of shareholders. Gibraltar’s cryptocurrency regulation is interested in developing small and medium businesses. Therefore it does not establish rules that can hinder their growth.
All crypto-currency companies registered in Gibraltar must adhere to the imposed tax on their activities. Control over the amount of taxes, collection, and disposal belongs to the Tax Service. Cryptocurrency companies are usually subject to the following general taxes:
estate or £10 (about €12) per share.
The amount of tax may vary depending on the company’s economic activity and resident status.
The work of Gibraltar crypto, like in any other jurisdiction, has advantages and disadvantages. Among the most important benefits are:
Because the license in this jurisdiction is prestigious, you can easily attract new investors and increase your client base. However, this jurisdiction has several disadvantages. Firstly, your company must have resident specialists, and you need to open an office here, which is sometimes tricky. Secondly, Gibraltar is part of the UK, so it is no longer a member of the EU. In addition, the cost of obtaining a license in this jurisdiction is higher compared to Estonia or Lithuania.
Please let us know which specific jurisdiction you are interested in, and our team will be glad to provide you with further information and guidance. With our expertise and knowledge of the licensing process, we can help ensure a smooth and efficient application process. Our services include assistance with acquiring a crypto license in the following jurisdictions:
Crypto license Gibraltar
This jurisdiction will be an excellent solution if you want to avoid spending the lion’s share of your income on taxes. There is favorable taxation here, making the territory attractive for the IT and fintech industries. It also does not set large requirements for applicants. However, obtaining a work permit here can be difficult, so we advise you to seek help from our specialists.
Yes. Companies that plan to conduct cryptocurrency activities can obtain a corresponding license (DLT) after thoroughly checking their activities.
Before applying for a local license, the company must register its activities in Gibraltar, have an offline office and staff of two people, present a detailed business plan, and confirm compliance with other standards of the licensing authority.
Yes. There are no additional requirements regarding nationality and position in the Law.
The license is issued for one year with the possibility of renewal an unlimited number of times.
Senior Partner, Lawyer
Senior Partner, Lawyer