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Highlights
- Gibraltar aims to become the ultra-hot market for cryptocurrency as it reviews the proposal for the acquisition of its stock exchange by a blockchain firm, Valereum.
- Its crypto-friendly environment is becoming a huge hit among tech-savvy investors.
- However, experts state that the British Overseas Territory may attract sanctions from the US Government as the former might give a pass to money launderers and black market criminals.
A piece of welcoming news for all the crypto lovers is that the British Overseas Territory, Gibraltar, has expressed its likeness to become the first cryptocurrency hub across the world.
Related Read: The race to adopt Bitcoin: After El Salvador, who’s next?
Source: © 2021 Kalkine Media®
As per the latest reports, the country is considering a proposal by Valereum Blockchain Plc, a blockchain technology group, to acquire the Gibraltar Stock Exchange (GSX) next year.
Must Read: Why is Dubai keen to become next crypto hub in Asia?
If the said proposal makes its way, then the British overseas territory would soon house the first integrated stock market worldwide, where the trading of conventional bonds would be done alongside cryptocurrencies like Bitcoin and Dogecoin.
Why did the British region make such a move?
Gibraltar is reviewing the said proposal in an attempt to attract global crypto companies and projects, thus future-proofing the region's status as a financial hub.
Interesting Read: Why these 11 nations do not tax Bitcoin gains
Moreover, the region has established itself as a friendly jurisdiction for crypto businesses to obtain licences; for instance, the eToro platform is being regulated by the Gibraltar Financial Services Commission.
Further, Huobi Global, the famous Chinese crypto exchange, shifted its spot trading services to Gibraltar after the clampdown on cryptocurrencies in its own country.
Cryptos being approved in Gibraltar
As of now, the government of Gibraltar has approved 14 cryptocurrencies and blockchain firms for its licensing scheme.
One of them is Valereum’s crypto-exchange project, which is seeking to harness a cryptocurrency sector that is estimated to be about £2.6 trillion, which is nearly the combined value of all the LSE-listed companies.
Will the said move be advantageous for Gibraltar?
While the British territory is looking forward to hosting the world’s first integrated bourse, experts opine that Gibraltar might face numerous sanctions from countries like the United States if it gives legal approval to crypto firms and overlooks money launderers, fraudsters, terror financing activities, which prefer the anonymity of crypto assets.
Is China's loss, gain for other countries?
The crackdown of crypto trading and crypto mining activities across China has reshaped the global crypto industry.
A Quick Read: Will China’s Latest Crypto Crackdown Harm the Long-Term Crypto Market?
Chinese crypto mining companies, as well as crypto exchanges, have flocked to crypto-friendly jurisdictions like Singapore, Gibraltar, Dubai and Malta, which have formulated regulations for licensing as well as registering crypto companies, thus cashing in on the opportunity to position themselves as crypto hubs.
Will Gibraltar become the first crypto hub worldwide
Bottom Line
The Crypto market is marked by extreme volatility, one day prices may shoot up, while the other day they may witness a downward trend; hence investors must be cautious while investing in these markets.
