Gibraltar

## Report: Retail_Trading_Status in Gibraltar

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

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### Retail_Trading_Status

**Identified Status:** Allowed-Regulated

**Detailed 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, primarily administered by the Gibraltar Financial Services Commission (GFSC), aims to foster innovation while ensuring consumer protection, market integrity, and the prevention of financial crime, including money laundering and terrorist financing.

The cornerstone of Gibraltar's approach is the Financial Services (Distributed Ledger Technology Providers) Regulations 2020 (the "DLT Regulations"), which came into effect in January 2018 and have since been updated. These regulations require any firm using DLT to store or transmit value belonging to others (which includes cryptocurrency exchanges and custodian services) to obtain a DLT Provider licence from the GFSC. This licensing regime is principles-based, focusing on ensuring that DLT providers adhere to nine core principles, which include honesty and integrity, customer care, robust systems and controls, financial crime prevention, resilience, and effective corporate governance.

For retail traders, this means that the platforms they are likely to use for buying, selling, and holding cryptocurrencies, if based in and regulated by Gibraltar, are subject to stringent oversight. This includes mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) / Countering the Financing of Terrorism (CFT) procedures. These requirements are in line with international standards, such as those set by the Financial Action Task Force (FATF). Gibraltar has been proactive in transposing EU Money Laundering Directives into its national law, and these apply to DLT providers.

In addition to the DLT framework, the GFSC issues guidance and warnings to consumers regarding the risks associated with investing in cryptocurrencies, emphasizing their volatility and the potential for loss of capital. The regulatory environment is designed not to stifle the crypto market but to provide a framework that encourages legitimate businesses to operate transparently and responsibly.

Gibraltar's Proceeds of Crime Act 2015 (POCA) also plays a role in the regulatory landscape, providing the basis for AML/CFT obligations. DLT providers are considered "relevant financial businesses" under POCA and are therefore subject to its requirements, including customer due diligence, ongoing monitoring, and reporting of suspicious transactions.

The jurisdiction has also been working on a framework for the regulation of token sales (Initial Coin Offerings or ICOs), further indicating its commitment to creating a comprehensive regulatory environment for the digital asset space. While the focus of the DLT framework is on the service providers, the overarching aim is to create a safe and well-regulated environment for all participants, including retail investors.

**Specific, Relevant Text Excerpts:**

1.  **Source:** Gibraltar Financial Services Commission (GFSC) - Distributed Ledger Technology (DLT)
    *   **Excerpt/Summary:** "In January 2018, Gibraltar introduced the Financial Services (Distributed Ledger Technology Providers) Regulations. These regulations introduced a principles-based regulatory framework for DLT Providers. Firms that use DLT to store or transmit value belonging to others, by way of business, in or from Gibraltar must be authorised by the GFSC as a DLT Provider." This establishes that firms offering crypto services, which retail traders would use, must be licensed.
    *   **Attribution:** Gibraltar Financial Services Commission.

2.  **Source:** Government of Gibraltar & Gibraltar Financial Services Commission - National Risk Assessment of Money Laundering and Terrorist Financing (2023 update, though referencing earlier frameworks)
    *   **Excerpt/Summary:** While a direct quote from a 2025 document is not available, the established approach is clear. The National Risk Assessment consistently highlights that DLT providers are considered "relevant financial businesses" under the Proceeds of Crime Act 2015 and are subject to the full scope of AML/CFT obligations, including customer due diligence (KYC), ongoing monitoring, and suspicious activity reporting. This directly impacts how retail traders interact with regulated platforms.
    *   **Attribution:** Government of Gibraltar & Gibraltar Financial Services Commission.

3.  **Source:** Hassans International Law Firm Limited - "CRYPTO AND DIGITAL ASSETS IN GIBRALTAR" (February 2024)
    *   **Excerpt/Summary:** "Gibraltar was one of the first jurisdictions in the world to regulate Distributed Ledger Technology ('DLT') business activity when it enacted its DLT Regulatory Framework in January 2018... The DLT Framework applies to activities not subject to other regulation and that use DLT for the transmission or storage of value." and "DLT Firms are required to comply with Gibraltar’s anti-money laundering and counter terrorist financing legislation (the Proceeds of Crime Act 2015 ('POCA'))." This confirms the long-standing regulatory approach and the application of AML laws to crypto businesses.
    *   **Attribution:** Hassans International Law Firm Limited.

4.  **Source:** ISOLAS LLP - "Gibraltar: Fintech 2024" (October 2023, providing an overview of the regulatory landscape)
    *   **Excerpt/Summary:** "The DLT regulatory framework is principles-based and centres around nine core regulatory principles... These principles are designed to ensure that DLT providers operate to high standards of conduct and governance, including in relation to consumer protection and AML/CFT." This highlights the consumer protection aspect relevant to retail traders and the AML/CFT requirements.
    *   **Attribution:** ISOLAS LLP, published by Chambers and Partners.

**Direct, Accessible URL Links:**

1.  **Gibraltar Financial Services Commission (GFSC) - Distributed Ledger Technology (DLT):** While a direct link to a single page summarizing all aspects might vary, the GFSC website is the primary source. A good starting point for DLT information is often found within their "Our Work" or "Regulated Sectors" sections. (A general link to the GFSC website: [https://www.fsc.gi/](https://www.fsc.gi/)) Users would then navigate to the DLT section.
2.  **Hassans International Law Firm Limited - "CRYPTO AND DIGITAL ASSETS IN GIBRALTAR" (February 2024):** [https://www.gibraltarlaw.com/crypto-and-digital-assets-in-gibraltar/](https://www.gibraltarlaw.com/crypto-and-digital-assets-in-gibraltar/)
3.  **ISOLAS LLP - "Gibraltar: Fintech 2024" (October 2023):** [https://practiceguides.chambers.com/practice-guides/fintech-2024/gibraltar](https://practiceguides.chambers.com/practice-guides/fintech-2024/gibraltar)
4.  **Proceeds of Crime Act 2015 (POCA):** Legislation is typically available via the Gibraltar Laws website: [https://www.gibraltarlaws.gov.gi/](https://www.gibraltarlaws.gov.gi/) (Users would need to search for the specific Act).

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**Disclaimer:** This report is based on information available up to the specified date. Financial regulations can change, and users should consult official sources or seek professional advice for the most current information.