Gibraltar Stock Exchange could adopt cryptocurrency
According to a Guardian article, financial market regulators are currently reviewing a Valereum blockchain proposal to buy out the Gibraltar Stock Exchange (GSX) for the year 2022.
Nick Cowan, CEO of GSX, was very favorable to it, announcing that he wanted to contribute to the success of Valereum’s objectives.
Concretely, this means that the GSX could become the first territory in the world where we will see traditional stock market securities exchanged alongside cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE) or stablecoin Tether (USDT).
Richard Poulden, CEO of Valereum, said about this:
” Gibraltar is a great place for such an exchange, especially because we speak English there, the legal structure is solid and European standards ensure safe regulation. […]. This is a very exciting opportunity for investors since they will be able to use cryptocurrency to invest in securities usually dependent on fiat money. “
At this time, the price for a buyout of this magnitude has yet to be disclosed.
Under the agreement, Valereum would become the owner of the Gibraltar Stock Exchange, holding 80% of the shares of the latter and leaving him the remaining 20%.
It should be noted that such a proposal is possible because Gibraltar is a small territory of 7km², where approximately 32,000 inhabitants reside and where the financial sector is regulated only by a team of 82 people.
? To read on the same subject: The government of Zanzibar is considering adopting cryptocurrencies
A left or double contract
However, such a change in the financial sector is not without risk.
Indeed, financial experts are already announcing that Gibraltar could face sanctions especially from the United States if the deal was accepted. According to them, this would further open the doors to money laundering and the black market thanks to the anonymity provided by cryptocurrency exchanges.
As we explained in this article, proving that crypto-assets could facilitate illegal activities almost impossible, but stereotypes die hard.
There is no doubt that the banking conglomerates are doing everything possible to try to put obstacles in the way of the development of cryptocurrency exchanges, which despite everything are growing in popularity.
The opportunity to redeem
Remember, moreover, that Gibraltar had sued a Spanish newspaper in 2015, which then accused it of being a den of organized crime and dirty money.
The buyout of the Stock Exchange is therefore an opportunity for the British overseas territory to buy a new image, relying on flawless regulation of its financial system.
Albert Isola, the Minister of Digital, Financial Services and Public Services of Gibraltar wished to support this desire:
” While Gibraltar was a tax haven twenty years ago, the territory has now overhauled its tax and information-sharing policies. The introduction of cryptocurrency regulation has a similar effect: eradicating bad actors and providing insurance to investors. “
One thing is certain, if the agreement is validated, it will announce a new era in the world of finance, since other jurisdictions would have to follow in Gibraltar’s footsteps, especially since the popularity of cryptocurrencies has grown significantly this year.
? To go further: An Ecuadorian community adopts Bitcoin (BTC) as local currency