Gibraltar moves to become world’s first cryptocurrency hub

[Poker Player]

What struck me most about this news is the threat of diplomatic sanctions. A territory that has been considered a tax haven until very recently, and now because it wants to become a cryptocurrency hub is threatened with sanctions. Wanting to become a major center for cryptocurrencies will not be an easy task but I would not be surprised if they succeed, threats aside, as they did manage to concentrate the headquarters of European online gambling sites.

Territory’s financial sector risks reputational damage and diplomatic sanctions if complex regulations of crypto hub fail.
n the southern Mediterranean coast, nestled in the shadow of the Rock’s sheer limestone cliffs and its tangle of wild olive trees, the Gibraltar Stock Exchange (GSX) is quietly preparing for a corporate takeover that could have global consequences for the former naval garrison.

Less than half a mile away, next to the blue waters of Gibraltar’s mid-harbour marina, the peninsula’s regulators are reviewing a proposal that would prompt blockchain firm Valereum to buy the exchange in the new year – meaning the British overseas territory could soon host the world’s first integrated bourse, where conventional bonds can be traded alongside major cryptocurrencies such as bitcoin and dogecoin.

It is a bold move for a territory of just 33,000 people, where the financial sector – which accounts for roughly a third of Gibraltar’s £2.4bn economy - is overseen by a regulator staffed by 82 employees. If all goes to plan, the enclave could become a global cryptocurrency hub; if the controls set by the small team of regulators fail, it risks reputational damage and ultimately diplomatic sanctions that could threaten its economy.

While countries including China and the UK have either banned or openly warned against investments in crypto assets, Gibraltar has bucked the trend, having committed to formally regulating cryptocurrencies in an attempt to future-proof the territory’s status as a financial hub.

It comes as Gibraltar struggles to shake off a reputation as a global tax haven, with the government having sued a Spanish newspaper in an attempt to restore its global standing.

Albert Isola, Gibraltar’s minister for digital, financial services and public utilities, says that while Gibraltar was a tax haven 20 years ago, the territory has now overhauled its tax and information sharing policies. The introduction of crypto regulation is having a similar effect: rooting out bad actors and providing assurance to investors, he says.

“If you wanted to do naughty things in crypto, you wouldn’t be in Gibraltar, because the firms are licensed and regulated, and they aren’t anywhere else in the world,” Isola says.

More on:
‘Blockchain Rock’: Gibraltar moves to become world’s first cryptocurrency hub.

Do you think this threat of sanctions will have any effect? I don't think so.

And do you think Gibraltar will become an important center for cryptocurrencies? I think so.

[ajanwalker]

Either bankrupt countries or such small countries are seriously interested in cryptocurrencies. For example, Venezuela is a bankrupt country and has recently come to the fore with crypto money. Now Gibraltar. Why is this happening? I wonder if such countries think they will become big countries with crypto money?

[Poker Player]

Either bankrupt countries or such small countries are seriously interested in cryptocurrencies. For example, Venezuela is a bankrupt country and has recently come to the fore with crypto money. Now Gibraltar. Why is this happening? I wonder if such countries think they will become big countries with crypto money?

Not really. The two countries have nothing to do with each other. Venezuela has pursued cryptocurrencies and came out with its own shitcoin, Petro which has been a failure, like everything politicians do in that country. Gibraltar is a tax haven where they understand very well how the world works and attract capital with low taxes and few regulations.

[hugeblack]

Personally, I do not take any news linking cryptocurrencies, bitcoin and dogecoin as a reliable source, I have always thought that such news aims to get more views or may be inaccurate.
We've heard that Malta is going to be a hub for crypto and other countries, but I've always said that taxes aren't the only thing to make a place central to something, it's infrastructure, state policy that encourages innovation, ease of doing transactions, and making everything look legal and smooth.

Any country that succeeds in these things while setting low taxes will be a crypto hub.

In short, I'm not too optimistic despite it being positive news.

[paxmao]

No wonder Gibraltar is joining the rush to be the crypto-Mecca. To be honest there is a good chance that they will be able to open a "new line of business" for crypto rich, yet the location is ill suited for a permanent residency. For those that do not understand what I say: it is well known that Gibraltar has more companies than actual people living in the territory. They live of being a dark financial haven for the drug lords of Morocco and Spain and an outpost of the British Empire with an special economic status.

Their economy is based on a military naval base from the brits and laundering money from Spain.

[Sirait]

Either bankrupt countries or such small countries are seriously interested in cryptocurrencies. For example, Venezuela is a bankrupt country and has recently come to the fore with crypto money. Now Gibraltar. Why is this happening? I wonder if such countries think they will become big countries with crypto money?

they will not be a big country because of crypto, they will be a safe country because of crypto. Bankrupt countries need strong support from around to revive their countries and the crypto community has great power today. If bankrupt countries take refuge in crypto, then as a big umbrella, crypto will protect the country from the threat of bankruptcy.

[kryptqnick]

I think it's unfair to threaten with sanctions when we're talking about a self-governing territory (and I googled that in all matters apart from defense Gibraltar is self-governing), and when its actions are not meant to harm anyone. This is merely due to distrust in cryptocurrencies, but it shouldn't be any countries' business, to be honest. They can make regulations on their territories, but should leave Gibraltar alone. The threat of money launderers is always out there, so why don't the US and co focus on their own issues, rather than tell Gibraltar how dangerous cryptos are?

[DaveF]

Remember Gibraltar is 2.6 SQ miles (6.7 SQ KM) with a population of under 35000 people.
Their only real options for growing their economy are in the financial services industry. They can't really build any kind of manufacturing infrastructure with that, too small for tourism, etc. so what else is there.
And the joy of crypto is you don't need massive bank vaults to hold cash and other things. It's a good idea for them.

Other places that do have the ability to have other industries may be a tougher sell for the population.

-Dave

[NeuroticFish]

From tax heaven to crypto hub, I see there a "hunger" for convincing businesses relocate or be built there. It's a great move, especially as DaveF correctly pointed it out, there aren't many types of businesses that can be there, although even a big manufacturing corporation can get its offices there, do some tax optimizations and ... benefit from Gibraltar's "offer". Of course, with crypto it's even more straightforward.

[fiulpro]

I definitely remember considering them for the headquarters of the gambling industry but I do think that this is not something that might work that fast. The license and the regulations are something that might cut the dream pretty fast. It is under hard to understand the fact that cryptocurrencies work well when they have support from the government and at the same time they are also working how they are supposed to work, but in Gibraltar the regulations are going to be a hindering section but at the same time they have approved 14 cryptocurrencies and bitcoins is ofc one of them. I think we might soon see some good things happening here, hopefully.

[pinggoki]

Either bankrupt countries or such small countries are seriously interested in cryptocurrencies. For example, Venezuela is a bankrupt country and has recently come to the fore with crypto money. Now Gibraltar. Why is this happening? I wonder if such countries think they will become big countries with crypto money?

You never know and given how small some of these country are, I think that it's safe to say that there's no harm in them doing any of this because they have little to lose, look at El Salvador, not that big of a deal for them even though problems are arising. Sanctions might be a possibility given that IMF and World Bank continuously prohibits cryptocurrencies.

[Lucius]

Do you think this threat of sanctions will have any effect? I don't think so.
And do you think Gibraltar will become an important center for cryptocurrencies? I think so.

As far as I understand from the article, most of the stories about some sanctions come from the US, which in this case is behaving like a world policeman worried about possible money laundering and terrorist financing. I think the whole thing is inflated on both sides, because it's hard for me to imagine Gibraltar becoming something that Malta has failed to do, or that the powerful US is worried that this country will become a problem in the world of finance.

“I don’t understand how there can be any increased risk in Gibraltar, when you can go to any other European country today and run exactly the same business without being supervised, without being licensed, and without being regulated. So how can we be more exposed by regulating them? It’s completely the opposite,” Isola says. He stresses that the country’s regulator has approved applications for only 14 firms over three years, a number that he claims speaks to the rigours of the licensing scheme. “It’s hardly a gold rush,” he says.

If you ask me, too much noise literally for nothing...

[Fortify]

What struck me most about this news is the threat of diplomatic sanctions. A territory that has been considered a tax haven until very recently, and now because it wants to become a cryptocurrency hub is threatened with sanctions. Wanting to become a major center for cryptocurrencies will not be an easy task but I would not be surprised if they succeed, threats aside, as they did manage to concentrate the headquarters of European online gambling sites.

Do you think this threat of sanctions will have any effect? I don't think so.

And do you think Gibraltar will become an important center for cryptocurrencies? I think so.

It's inevitable that small countries like these will aim to become virtual hubs for businesses - they are limited by land space but the internet gives them huge abilities because they have such a concentrated & highly educated work force to utilize. Newspapers tend to overhype the situation because while the UK (and practically every European country) has warned people about investing in Bitcoin, they have never mentioned banning it. I'm not sure why you conflate it with the Chinese ban in the same sentence, they are worlds apart. You seem to mix up examples on extreme ends of the spectrum so casually and it makes it hard to understand your arguments. Gibraltar will be able to serve a niche in this sector, the government may even encourage it, but it's not wholly down to the interest of one crypto company who might take over their small stock exchange.

[naira]

A small country that is trying to be independent and stronger in terms of financial management. But on the other hand, it is made as if it is difficult and will continue to be complicated. Considering their location, they will depend on the docks in the south. Now Gibraltar is under pressure and demands that their freedom of operation be protected. From what I've noticed, this maneuver was intentionally made so that Dollar would be the only one to save them. But the citizens of Gibraltar are now smarter and know a big source of income is in cryptocurrencies. As a place that has been a tax haven for quite a long time, trying to get out of the zone that is questioning their sovereignty to be freer to adopt cryptocurrencies.

[timerland]

I wouldn't say that Gibraltar is the first crypto hub.

Singapore, Malta, and now El Salvador have all moved much quicker and offer a lot more regulatory certainty imho.

I think that it is certainly a positive move though, and hopefully in the future there is no need for crypto havens as all governments should move towards positive regulation.

[Darker45]

It is even a lot easier for Gibraltar to succeed than El Salvador. In the first place, the country is doing well economically. With a small jurisdiction and only a few tens of thousands of citizens, it could very well manage its commitment to become the world’s first cryptocurrency hub. And the country is not even taking such a huge step as adopting Bitcoin as a legal tender. It is simply showing welcoming arms to cryptocurrency firms and companies. And they are emphasizing that license and regulations are to be put in place. It just sounds weird that certain countries and financial institutions are seemingly overreacting to Gibraltar's move.

[TheUltraElite]

I would not say "first crypto hub" - but it depends on what your definition of the phrase is.

The major news making theme of the current few months has been this which we have seen on El Salvador too. Point is that they are all trying to attract more and more crypto-related services which by far currently are Casinos and Exchanges and these two are the majority places to spend or buy/sell crypto from respectively.

It can be due to their government trying to get in more foreign companies to enter and start their operations just like previous such crypto-friendly nature countries have done.

I think it all boils down to being a race of who gets the major casinos in their taxation pocket.

[Rufsilf]

Gibraltar is one of the most affluent places in the world. The economy is based on shipping trade, the online gaming industry, and the financial centre. Many big betting and gaming companies are based in Gibraltar, making the industry a core part of its economy. The industry is so prevalent that a tenth of the population is employed by betting and gaming companies.

Source: https://www.blacktowerfm.com/news/interesting-facts-gibraltar-wealth-management/

Just like Dubai, Malta and Singapore. Gibraltar also aims to be the 1st successful cryptocurrency hub with an aim to attract more investors like giant crypto companies and tech savvys. It's no wonder why Gibraltar wants to be a crypto hub too boost their economic more and as said their economy core is based on gambling so being a crypto hub will be likely their next plan. Gibraltar's has a GDP of £1.5 Billion and that will grow if they'll be successful and maybe they will be more established than other cities that have planned to be a crypto hub as well.

[Sithara007]

I wouldn't say that Gibraltar is the first crypto hub.

Singapore, Malta, and now El Salvador have all moved much quicker and offer a lot more regulatory certainty imho.

I think that it is certainly a positive move though, and hopefully in the future there is no need for crypto havens as all governments should move towards positive regulation.

Not sure about Singapore though. I have friends and relatives in Singapore and they say that it is not yet 100% legal to deal in cryptocurrency there. The police department is frequently coming up with statements claiming that cryptocurrency is being used by criminals to hide their tracks. Among the politicians, there are people on both the sides of the debate. Only El Salvador has yet made cryptocurrency as the legal tender. I have heard some rumors about Malta, but that is it. No concrete action from their side.