Gibraltar Crypto: DLT Licensing & Tax #19

Country facts

Gibraltar crypto score

Trade and store crypto

DLT Provider licence, zero CGT, and Gibraltar’s blockchain business hub

Gibraltar has generally been open to Bitcoin from the beginning of its rise as the foremost cryptocurrency. Despite the currency’s ups and down – and controversy in part to fraud and theft, the country has remained keen on developing its cryptocurrency and blockchain community. At the time of writing the Gibraltar Stock Exchange (GSX) has regulatory approval to be partially or wholly owned, with the aim of it being operated, by a notable blockchain company, Valereum.

This would make it one of the world’s first stock exchanges to be able to trade traditional stocks and shares alongside a number of cryptocurrencies. This ringing establishment endorsement for cryptocurrency, however, is unlikely to be repeated anywhere else just now. Gibraltar’s financial sector is very important to the country, and the regulatory approval for its stock exchange to go ahead could open up a flood of money from overseas crypto investors.

Such a ground-breaking move seems to be in keeping with the country’s wish to ditch its former reputation as a tax-haven and follows wider regulation and overhauling of the crypto industry.

Anti Money laundering regulations and licensing laws, when they are enforced actually help to promote the crypto industry, so the country seems to be looking well beyond Bitcoin’s current price turmoil and difficulties, to a new age of well-regulated crypto trading and investment.

Skip the wait. Buy a licensed company.

That said, you’re likely to find little difficulty trading Bitcoin in Gibraltar and you’ll only be taxed on your income crypto income overall. There appears to be no capital gains tax on holding crypto. However, as with many countries, whether you are a regular trader or an occasional one, will probably come into the equation when it comes to paying capital gains.

Gibraltar has a small but growing number of cryptocurrency and blockchain firms (virtual Asset Service providers under licence.

Is Gibraltar a good place for my bitcoin/Crypto business?

Operating your cryptocurrency or blockchain business requires a formal licence and acquiring one falls under the jurisdiction of the Gibraltar Financial Services Commission (GFSC).
Under its consideration is the potential for online crypto trading and blockchain database-related enterprises. Companies most likely to be approved for cryptocurrency transactions are insurance companies and trading platforms. Public sector organisations such as Land Register and the Companies House are able to accept cryptocurrency payments.

Is Gibraltar a good place for Bitcoin mining?

Kind of. The mining of Bitcoin and other cryptocurrencies is not covered by any specific legal or regulatory framework, so it can really go both ways from here.

What Bitcoin regulations do I need to know in Gibraltar?

To be updated

Is the Gibraltar government promoting Bitcoin?

Some countries such as China have openly banned cryptocurrency trading, and some promote it wholeheartedly, such as El Salvador. Most are a mix of something in between. Gibraltar appears to want to go down the former route (but draws the line at declaring Bitcoin to be legal tender as El Salvador has done). Many countries have developed strong Bitcoin trading economies, whilst regulation catches up with events. Gibraltar seems to want to take the lead in this respect and put the regulatory framework in place thus preparing the ground as one of Europe’s leading financial hubs.

Is Gibraltar a leading Bitcoin economy?

Gibraltar has established itself as quite a crypto hub over the last few years, and some fairly large names have set up shop in Gibraltar and obtained licenses from local regulators, including (the now bankrupt) FTX, Huobi and Bullish.

Can I do blockchain and cryptocurrency courses in Gibraltar?

Unichrone offers an interactive Blockchain Training Course in Gibraltar for IT professionals and individuals interested in Blockchain. Their course introduces professionals to the concepts of blockchain and cryptocurrency.

Crypto regulation in Gibraltar

What Bitcoin regulations do I need to know in Gibraltar?