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Gibraltar

Retail_Trading_Status

Allowed-Regulated Unknown
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Analysis ID
#246
Version
Archived
Created
2025-06-26 09:09
Workflow Stage
Initial Research

Executive Summary

In Gibraltar, retail trading of cryptocurrencies is legally permitted but regulated. The Gibraltar Financial Services Commission (GFSC) oversees this framework, which is grounded in the Financial Services (Distributed Ledger Technology) Regulations 2017, requiring DLT providers to be authorized. A strong emphasis is placed on AML/CFT/CPF compliance, ensuring consumer protection and financial crime prevention. Gibraltar is also developing regulations for crypto derivatives and incorporating crypto assets into tax transparency frameworks.

Key Pillars

The primary regulator is the Gibraltar Financial Services Commission (GFSC). Core compliance requirements revolve around Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Counter-Proliferation Financing (CPF), as mandated by the Proceeds of Crime Act 2015 (POCA). Businesses using DLT for storing or transmitting value belonging to others (including cryptocurrency exchanges and wallet providers) require authorization from the GFSC as a DLT Provider.

Landmark Laws

  • Financial Services (Distributed Ledger Technology) Regulations 2017: Effective January 1, 2018, requiring firms using DLT for storing or transmitting value belonging to others to be authorized by the GFSC as a DLT Provider.
  • Proceeds of Crime Act 2015 (POCA): Requires firms to adhere to AML/CFT/CPF compliance, including customer due diligence (CDD), transaction monitoring, and reporting suspicious activities.
  • Proceeds of Crime Act 2015 (Transfer of Virtual Assets) Regulations 2021: Implements the FATF's 'travel rule', mandating the collection and exchange of information for virtual asset transfers above a certain threshold.
  • Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021: Requires entities selling digital assets to register with the GFSC as Virtual Asset Service Providers (VASPs).
  • Financial Services (Core Principles and Consumer Duty) Regulations 2024: Introduced in May 2024 to enhance retail customer outcomes for financial services firms, including those in the DLT sector.

Considerations

While no specific laws prohibit individuals from buying, selling, or holding cryptocurrencies, the regulations primarily target businesses providing crypto-related services. Gibraltar is actively working on incorporating crypto assets into tax transparency frameworks, aligning with international efforts like the Crypto-Asset Reporting Framework (CARF). In May 2025, Gibraltar announced plans to establish a regulatory framework for the clearing and settlement of cryptocurrency derivatives.

Notes

Gibraltar was one of the first jurisdictions to provide a clear regulatory framework for blockchain and cryptocurrency businesses. Exchanges under CARF are expected to commence in 2027 or 2028. The regulatory framework for DLT was launched in January 2018. The GFSC is collaborating with government authorities and crypto exchange Bullish to develop rules for crypto derivatives clearing.

Detailed Explanation

Gibraltar permits retail trading of cryptocurrencies under a comprehensive regulatory framework overseen by the Gibraltar Financial Services Commission (GFSC). The cornerstone of this framework is the Financial Services (Distributed Ledger Technology) Regulations 2017, which took effect on January 1, 2018. These regulations mandate that any firm conducting business in or from Gibraltar and utilizing distributed ledger technology (DLT) for storing or transmitting value belonging to others—including cryptocurrency exchanges and wallet providers—must be authorized by the GFSC as a DLT Provider. This licensing regime is principles-based and outcomes-focused. The GFSC's regulatory objectives prioritize market confidence, systemic risk reduction, consumer protection, the reputation of Gibraltar, and the reduction of financial crime.

A significant emphasis is placed on Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Counter-Proliferation Financing (CPF) compliance. Businesses in the crypto space must comply with the Proceeds of Crime Act 2015 (POCA) and its subsidiary legislation, including conducting customer due diligence (CDD), monitoring transactions, and reporting suspicious activities. The GFSC provides detailed guidance for DLT providers on AML/CFT/CPF expectations. Furthermore, Gibraltar has implemented the FATF's 'travel rule' through the Proceeds of Crime Act 2015 (Transfer of Virtual Assets) Regulations 2021, requiring the collection and exchange of information for virtual asset transfers above a certain threshold.

Entities involved in selling digital assets, such as through initial token offerings (ITOs) or over-the-counter (OTC) desks, are required to register with the GFSC as Virtual Asset Service Providers (VASPs) under the Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021. This registration also focuses on AML/CFT/CPF compliance. Although the regulations primarily target businesses providing crypto-related services, they indirectly govern and enable retail trading by ensuring that individuals transact through licensed and supervised entities that uphold high standards of consumer protection and financial crime prevention. There are no specific laws prohibiting individuals from buying, selling, or holding cryptocurrencies for their own account; the regulatory focus is on intermediaries and market infrastructure.

Gibraltar continuously evolves its regulatory landscape. In May 2024, the Financial Services (Core Principles and Consumer Duty) Regulations 2024 were introduced to enhance retail customer outcomes for financial services firms, including those in the DLT sector. More recently, in May 2025, Gibraltar announced its intention to establish a regulatory framework for the clearing and settlement of cryptocurrency derivatives, aiming to improve transparency and reduce operational risks in this segment of the market. The jurisdiction is also actively working on incorporating crypto assets into tax transparency frameworks, aligning with international efforts like the Crypto-Asset Reporting Framework (CARF). Exchanges under CARF are envisaged to commence in 2027 or 2028. The new framework for crypto derivatives is being developed in collaboration with the GFSC, government authorities, and crypto exchange Bullish.

Summary Points

Gibraltar: Retail Trading of Cryptocurrencies - Regulatory Analysis (2025-06-26)

I. Overall Regulatory Status:

  • Allowed-Regulated: Retail trading of cryptocurrencies is permitted but subject to comprehensive regulation.
  • No specific laws prohibit individuals from buying, selling, or holding cryptocurrencies.
  • Focus is on regulating intermediaries and market infrastructure.

II. Key Regulatory Bodies:

  • Gibraltar Financial Services Commission (GFSC):
    • Primary regulator overseeing the crypto regulatory framework.
    • Authorizes and supervises DLT Providers and VASPs.
    • Promotes market confidence, reduces systemic risk, protects consumers, safeguards Gibraltar's reputation, and reduces financial crime.

III. Important Legislation and Regulations:

  • Financial Services (Distributed Ledger Technology) Regulations 2017 (DLT Regulations):
    • Foundation of Gibraltar's crypto regulatory environment.
    • Requires authorization from the GFSC for firms using DLT for storing or transmitting value belonging to others.
    • Principles-based and outcomes-focused.
  • Proceeds of Crime Act 2015 (POCA) and subsidiary legislation:
    • Focuses on Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Counter-Proliferation Financing (CPF) compliance.
    • Includes requirements for customer due diligence (CDD), transaction monitoring, and reporting suspicious activities.
  • Proceeds of Crime Act 2015 (Transfer of Virtual Assets) Regulations 2021 (Travel Rule):
    • Implements the FATF's "travel rule."
    • Mandates collection and exchange of information for virtual asset transfers above a certain threshold.
  • Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021:
    • Requires entities involved in selling digital assets (ITOs, OTC desks) to register with the GFSC as Virtual Asset Service Providers (VASPs).
    • Focuses on AML/CFT/CPF compliance.
  • Financial Services Act 2019:
    • Primary legislation regulating cryptocurrency companies in Gibraltar.
    • Requires cryptocurrency companies to obtain a license from the GFSC to operate in Gibraltar.
  • Financial Services (Core Principles and Consumer Duty) Regulations 2024:
    • Enhances retail customer outcomes for financial services firms, including those in the DLT sector.

IV. Requirements for Compliance:

  • DLT Provider License (for relevant businesses): Authorization from GFSC required for firms using DLT for storing or transmitting value belonging to others.
  • VASP Registration (for entities selling digital assets): Registration with GFSC required for entities involved in selling digital assets.
  • AML/CFT/CPF Compliance: Adherence to POCA 2015 and subsidiary legislation.
    • Customer Due Diligence (CDD)
    • Transaction Monitoring
    • Suspicious Activity Reporting (SAR)
  • Travel Rule Compliance: Collection and exchange of information for virtual asset transfers above a certain threshold.

V. Notable Restrictions or Limitations:

  • While retail trading is permitted, individuals must transact through licensed and supervised entities.
  • The regulatory framework primarily targets businesses providing crypto-related services.

VI. Recent Developments or Changes:

  • May 2024: Introduction of the Financial Services (Core Principles and Consumer Duty) Regulations 2024 to enhance retail customer outcomes.
  • May 2025: Announcement of intention to establish a regulatory framework for the clearing and settlement of cryptocurrency derivatives.
  • Ongoing: Actively working on incorporating crypto assets into tax transparency frameworks (CARF).

Full Analysis Report

Retail_Trading_Status: Gibraltar

Date: 2025-06-26

Status: Allowed-Regulated

Narrative Explanation:

Gibraltar has established itself as a pioneering jurisdiction in the regulation of cryptocurrencies and Distributed Ledger Technology (DLT). Retail trading of cryptocurrencies by individual citizens and residents is legally permitted but is subject to a comprehensive regulatory framework. This framework is primarily overseen by the Gibraltar Financial Services Commission (GFSC).

The foundation of Gibraltar's crypto regulatory environment is the Financial Services (Distributed Ledger Technology) Regulations 2017 (the "DLT Regulations"), which came into effect on January 1, 2018. These regulations require any firm carrying on business, in or from Gibraltar, using DLT for storing or transmitting value belonging to others (which includes cryptocurrency exchanges and wallet providers) to be authorized by the GFSC as a DLT Provider. This licensing regime is principles-based and outcomes-focused, designed to be flexible and adaptive to the rapidly evolving nature of the technology. The GFSC's regulatory objectives include promoting market confidence, reducing systemic risk, protecting consumers and the reputation of Gibraltar, and reducing financial crime.

A key aspect of this regulatory framework is the strong emphasis on Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Counter-Proliferation Financing (CPF) compliance. Firms operating in the crypto space must adhere to the Proceeds of Crime Act 2015 (POCA) and its subsidiary legislation, including conducting customer due diligence (CDD), monitoring transactions, and reporting suspicious activities. The GFSC has issued detailed guidance for DLT providers on AML/CFT/CPF expectations. Furthermore, Gibraltar has implemented the FATF's "travel rule" through the Proceeds of Crime Act 2015 (Transfer of Virtual Assets) Regulations 2021, which mandates the collection and exchange of information for virtual asset transfers above a certain threshold.

In addition to the DLT licensing framework for service providers, entities involved in selling digital assets, such as through initial token offerings (ITOs) or over-the-counter (OTC) desks, are required to register with the GFSC as Virtual Asset Service Providers (VASPs) under the Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021. This registration also focuses on AML/CFT/CPF compliance.

While the regulations primarily target businesses providing crypto-related services, these comprehensive rules indirectly govern and enable retail trading by ensuring that individuals transact through licensed and supervised entities that uphold high standards of consumer protection and financial crime prevention. There are no specific laws prohibiting individuals from buying, selling, or holding cryptocurrencies for their own account. The focus is on regulating the intermediaries and the market infrastructure.

Gibraltar continues to evolve its regulatory landscape. In May 2024, the Financial Services (Core Principles and Consumer Duty) Regulations 2024 were introduced to enhance retail customer outcomes for financial services firms, including those in the DLT sector. More recently, in May 2025, Gibraltar announced its intention to establish a regulatory framework for the clearing and settlement of cryptocurrency derivatives, aiming to improve transparency and reduce operational risks in this segment of the market. The jurisdiction is also actively working on incorporating crypto assets into tax transparency frameworks, aligning with international efforts like the Crypto-Asset Reporting Framework (CARF).

Relevant Text Excerpts and Sources:

  • CMS Expert Guide to Crypto Regulation Gibraltar: "Since the 1st January 2018, any firm carrying out by way of business, in or from within Gibraltar, the use of distributed ledger technology (DLT) for storing or transmitting value belonging to other, needs to be authorised by the GFSC as a DLT provider."
  • CMS Expert Guide to Crypto Regulation Gibraltar: "For token sales (which generally fall outside of the DLT licensing framework) Gibraltar has a robust VASP registration system in place which connects project principles directly with the regulator to ensure a high standard of AML and KYC checks."
  • Global Legal Insights - Blockchain & Cryptocurrency Laws and Regulations 2025 – Gibraltar: "Gibraltar has a positive and welcoming attitude towards cryptocurrencies and blockchain technology. Gibraltar has been proactive in creating a favourable regulatory environment for crypto-related businesses. This is illustrated by the enactment of the Financial Services (Distributed Ledger Technology) Regulations (“DLT Regs”). Gibraltar became the first jurisdiction to provide a clear and comprehensive regulatory framework for blockchain and cryptocurrency businesses."
  • Global Legal Insights - Blockchain & Cryptocurrency Laws and Regulations 2025 – Gibraltar: "The Gibraltar Financial Services Commission (“GFSC”) regulates distributed ledger technology providers (“DLT Firms”), which include cryptocurrency exchanges and wallet providers, among others. Firms operating within this space are also required to comply with local anti-money laundering (“AML”), counter-terrorist financing (“CFT”) and counter-proliferation financing (“CPF”) rules and regulations contained within the Proceeds of Crime Act 2015 (“POCA”) and its subsidiary legislation."
  • How to get a Crypto license (DLT license) in Gibraltar - Gofaizen & Sherle: "Cryptocurrency is legal in Gibraltar. Gibraltar has implemented a regulatory framework for cryptocurrency businesses requiring a license from the Gibraltar Financial Services Authority."
  • How to get a Crypto license (DLT license) in Gibraltar - Gofaizen & Sherle: "The Financial Services Act passed in 2019, is the primary legislation regulating cryptocurrency companies in Gibraltar. Under the Financial Services Act, cryptocurrency companies must obtain a license from the GFSC to operate in Gibraltar."
  • Gibraltar Finance - The Distributed Ledger Technology Regulatory Framework (DLTRF): "The Distributed Ledger Technology (DLT) Regulatory Framework in Gibraltar, launched in January 2018, is one of the first pieces of legislation worldwide that specifically caters to DLT. It aims to establish an efficient and secure regulatory environment for companies utilizing DLT for value transmission or storage on behalf of others."
  • GFSC Guidance Note - Scope of the DLT Framework: "Therefore, any firm carrying on by way of business, in or from Gibraltar, the use of distributed ledger technology ('DLT') for storing or transmitting value belonging to others, needs to be authorised by the GFSC as a DLT Provider."
  • Notabene - Travel Rule Crypto in Gibraltar by the GFSC: "Yes. Gibraltar adopted a proactive and progressive approach to regulating the crypto industry by putting forward the Distributed Ledger Technology Framework (DLT Framework) as early as 2018. This framework regulates firms carrying out by way of business, in or from Gibraltar, the use of DLT for storing or transmitting value belonging to others."
  • Coincub - Best Crypto Exchange Gibraltar: "Gibraltar has generally been open to Bitcoin from the beginning of its rise as the foremost cryptocurrency... you're likely to find little difficulty trading Bitcoin in Gibraltar..."
  • HM Government of Gibraltar - Gibraltar Strengthens Global Tax Transparency Commitment and Crypto-Asset Regulation (Jan 2025): "Gibraltar is among the 61 jurisdictions committed to extending the automatic exchange of tax information to crypto-assets, a vital move in addressing the evolving challenges of the digital economy. Exchanges under CARF are envisaged to commence in 2027 or 2028."
  • ThePaypers - Gibraltar develops rules for crypto derivatives clearing (May 2025): "The new framework has been developed through collaboration between the Gibraltar Financial Services Commission (GFSC), government authorities, and crypto exchange Bullish. The initiative will allow the establishment of recognised clearing houses responsible for handling the finalisation of derivative trades involving virtual assets."

Direct URL Links to Sources:

Web Sources (15)

Sources discovered via web search grounding

Search queries used (6)
  • Gibraltar retail cryptocurrency trading regulations
  • Gibraltar Financial Services Commission cryptocurrency policy
  • DLT Regulatory Framework Gibraltar
  • Gibraltar crypto AML KYC requirements
  • Are individuals allowed to trade crypto in Gibraltar?
  • Gibraltar official statements on cryptocurrency trading
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