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Crypto license in Gibraltar

Crypto license in Gibraltar

Gibraltar is considered a friendly jurisdiction for all blockchain projects because of its progressive legal framework for fintech. In addition, as an overseas territory of the UK, it has a strong connection to the EU market. Fast Offshore Licenses specialists can help with the process of legalizing your business and obtaining a Crypto License in Gibraltar.

Gibraltar’s financial market regulator is the Gibraltar Financial Services Commission (GFSC). Its main functions include: monitoring the market, issuing authorizations, and protecting the rights of investors. The GFSC bases its activities on the Financial Services Act 2018, which outlines the key 10 principles of Digital Ledger Technology (DLT) business operations. The key message embedded in these principles is to ensure market transparency. The DLT license legalizes the activities of exchangers, exchanges, trading platforms, as well as custodial services.

The EU rules against illicit enrichment (AMLD 5 and AMLD 6) apply here, which affects the conduct of crypto-business and the fulfillment of Gibraltar crypto license requirements. For fintech companies this jurisdiction is attractive not only for legalization of crypto activities but also for tax conditions: no VAT, no rate on capital gains and dividends, low corporate tax.

License has already been granted to such large crypto exchanges as Huobi, GBX, Covesting, and CEX.IO. GFSC sets clear requirements for obtaining a license and carefully analyzes all documents, compliance with data security measures, and compliance with international AML/CFT norms.

Advantages of getting a cryptocurrency license in Gibraltar

Gibraltar is interesting for a new business with several opportunities and prospects:

Tax system.
For businesses related to blockchain technology in this zone, there is a 12.5% tax on corporate profits, there is no VAT, dividend, or capital gains tax.

Progressive regulatory framework.
In this jurisdiction, the Regulator has a structured approach to the approval of the Gibraltar crypto license with clear 10 principles of the Financial Services Act 2018 and the AML/CTF Act. The Regulator monitors compliance throughout the crypto company’s operations.

Authority in the international crypto market.
This territory is influenced by the UK but is connected to Europe, which gives huge development opportunities. Big crypto sphere players (exchanges, trading platforms) are interested in investing capital and expanding their business in this zone.

Request more info about the Crypto License in Gibraltar

Requirements for obtaining a cryptocurrency license in Gibraltar

The actions of the Regulator are aimed at protecting the interests of investors, ensuring the safety of customer data, and leveling the risks associated with the crypto industry.

If all the requirements from the GFSC are met, obtaining a Gibraltar crypto exchange license is quite fast and easy.

AML/CFT regulations. For a company that decides to obtain a crypto license, it is important to prove to the Regulator that all international measures and procedures against illicit enrichment will be followed, an AML manager will be appointed, KYC procedures will be followed during transactions, and investor data will be protected from cyberattacks.
Full details of management and shareholders. All identification documents of the general managers and founders, proof of residency, as well as letters of recommendation, diplomas, and certificates are provided to the GFSC.
Financial Documents. The application for authorization includes the submission of a business plan with a painted strategy and target markets, financial statements, and proof of ability to run a crypto business (technically and materially).
Payment of the fee. The applicant pays about 2,000 GBP for the GFSC to review the application and determine the complexity of the business, then once the level is determined, the full application fee is paid (Level 1 – 10,000 GBP, Level 2 – 20,000 GBP, Level 3 – 30,000 GBP).

Procedure for Obtaining Cryptocurrency License Registration in Gibraltar

Cryptocurrency license in Gibraltar is divided into several categories of complexity, the annual fee will depend on it: Level 1 – blockchain projects – 10,000 GBP Level 2- ICO-projects – 20,000 GBP Level 3 – crypto exchanges – 30,000 GBP The process of obtaining a DLT license from the GFSC goes through several stages:

Business form of the company

The organization is defined with future business activities, services provided, and start-up capital.

Legal entity registration

In Gibraltar, I usually register LTD (Limited Liability Company). For registration, it is necessary to submit a memorandum, Articles of Association, Minutes, Orders, proof of address in the territory, and documents that identify the directors, and managers.
The registration procedure takes about two weeks.

Filing a request for a DLT license

This process is divided into several phases:

Pre-application. The applicant contacts the GFSC’s Risk and Innovation Unit to judge the business model, possible risks of the business, future use of blockchain technology, and customer category. The regulator determines the level of complexity of the business. In terms of time, it takes about two weeks. The applicant pays a state fee of 2,000 GBP at this stage.
Full application and presentation. After receiving recommendations from the GFSC, a full application is submitted. It includes identification documents of directors and founders, information on residence, proof of reputation and work experience, certificates, and documents on the company (business plan and process of further development, AML/CFT procedures, prescribed work with risk management). The presentation is required for GFSC to optimize the time for consideration of the application details. The applicant pays the full state fee according to the defined complexity of the business.
Receiving a decision from the GFSC. The regulator needs to find confirmation that the company will comply with all 10 principles outlined in the Financial Services Act 2018 in its operations. Only after making sure of this the applicant receives a DLT license from the GFSC.

The document review process can take up to 6 months.

Compliance

The GFSC is informed about changes in the company’s business model, organizational structure, and technological processes.

Crypto license consultant in Gibraltar

Consultant

Eugen Fomin

Phone +6531596549
Email e.fomin@fastoffshorelicenses.com
Position
Paralegal, Consultant

Types of Cryptocurrency Licenses in Gibraltar

The DLT license Gibraltar is divided into several categories according to the level of complexity. It all depends on the business model, type of activity, and scale of the company. The category affects the amount of payment of annual fees:

1st category, it includes blockchain projects with a fee of 10,000 GBP
2nd category, these are already ICO-projects with a fee of 20,000 GBP
3rd category is for large-scale activities such as exchanges and exchanges with a fee of 30,000 GBP

Types of license:

Crypto exchange
Cryptobroker
Crypto trading
VASP for crypto service providers

Establishing a cryptocurrency company in Gibraltar

Among Dlt license Gibraltar requirements is that the license is issued to a legal entity with registration in this jurisdiction. A widespread form of registration is a limited liability company LTD. The process of registration takes place in the following sequence of steps:

Constituent documents

At registration it is necessary to specify the full package of documents consisting of:

statutes, memorandum, minutes of directors’ meetings, orders on appointment of managers
business plan with described marketing strategy, target markets, prospective scaling up
documents identifying the main managers, and founders (there should be at least one, without residency requirements), as well as information about their residency, resumes, certificates of absence of criminal records.

Hiring employees

The company should have at least two employees, a secretary, AML specialist.

Local Office

The organization needs to confirm a local office, it can be a rented space.

Website

The company should have a website developed with information about the company.

Corporate Account

To conduct its business, the organization opens an account in a local bank. There are 10 banks, access to SWIFT, IBAN, international payment systems, and the ability to work with multi-currency accounts.

Documents required to obtain a cryptocurrency license in Gibraltar

The cryptocurrency market with millions of capitalization has already become a significant part of the global financial system. GFSC aims to reduce the risks associated with the crypto sphere and at the same time create a favorable environment for business development and attract investors to the jurisdiction.

Legalization of crypto-business occurs only by obtaining a license, for this purpose, it is necessary to submit:

Application to the GFSC
Pay the application fee for the VASP crypto license in Gibraltar, and then the full amount of the annual fee.
Information about the organization: incorporation documents, disclose all details of the founders and directors, confirm the office address
Business plan, which will disclose the business model, enterprise development strategy, financial prospects, business scale, target clients
Financial statements, balance sheet, etc
AML/CFT policies, KYC procedures developed

Regulation of Cryptocurrencies in Gibraltar

The GFSC governs the financial market based on:

Financial Services Act 2018
The “Proceeds of Crime Act” of 2015, which specifies anti-money laundering regulations
The ‘Data Protection Act’ of 2004, which regulates the security of customer data in transactions
The Companies Act 2014, specifies the necessary regulations for company registration and reporting.
The Intellectual Property Regulations (2021) were enacted to protect the interests of the company.

Taxation in Gibraltar

Gibraltar does not have separately developed tax legislation for cryptocurrencies and virtual currencies. All fintech companies are subject to general taxation:

corporate tax – 12.5% (if profits are earned in this jurisdiction), according to the Income Tax Act 2010
Social Security – 20%
Stamp duty 0-3% for real estate depending on the value of 10 GBP per share
no VAT, no tax on dividends, capital gains, or sales tax.

The tax year is from July 1 to June 30.

Gibraltar has signed only one double tax treaty with the UK.

FAQ about cryptocurrency license in Gibraltar

How do I get a Gibraltar cryptocurrency license?

Based on the applicant’s submitted documents, the GFSC issues a DLT license.

Is cryptocurrency regulated in Gibraltar?

Yes, it is regulated. The basic 10 principles for operating in the crypto market, are laid down by the specially designed Financial Services Act 2018.

How much does a cryptocurrency license cost in Gibraltar?

The cost of the license depends on many factors and requirements of this jurisdiction as a category of business complexity, registered legal form, and initial capital.

How long does it take to obtain a cryptocurrency license in Gibraltar?

Applicants for a license must prove to the Regulator their financial, and technical capabilities to run a crypto business.GFSC analyzes the data for about 6 months.

Is cryptocurrency taxable in Gibraltar?

There is no specific tax on virtual currencies in this jurisdiction, all cryptocurrencies are subject to general taxation with the rules set out in the Income Tax Act 2010.