For several years now, Portugal has been attracting many founders and investors to the crypto space with its Golden Visa and its treatment of crypto which is currently that crypto winnings are not taxed on the grounds that they are not legal tender .
In a bid to level the playing field with investors in other asset classes, Portuguese Finance Minister Fernando Medina confirmed that he would start taxing crypto gains, but did not confirm when that change would come. .
This decision reinforces the advantages of Gibraltar which provides legal, regulatory and tax certainty in what can often still be an uncertain business on a global scale.
Gibraltar has established a robust DLT regulatory framework which has been in place since 2018. Gibraltar licenses from the Financial Services Commission have been granted to many large and highly reputable crypto exchanges including eToro, ZUBR (FTX subsidiary), Huobi, Xapo , CEX, Bitso and Currency.com, among others.
For token sales (which typically fall outside the DLT licensing framework), Gibraltar has a robust VASP registration system that links the project principles directly to the regulator to ensure a high level of AML and KYC checks. Although the token-issuing entity is not licensed by the regulator, this registration/approval process provides reassurance to both investors and third-party service providers that are required to operate and interact with the traditional financial world ( such as banks).
- The 3 certainties: legal, regulatory and tax security with regard to crypto.
- Proven process for VASP registration. Fast, efficient and comfortable for investors and third-party service providers.
- Ability to open crypto and fiat accounts for the VASP.
- Highly developed crypto ecosystem in Gibraltar.
- MiCA is still a few years away from implementation and adoption in the EU. The rules won’t be clear until they come into effect and there will be some teething problems at first.
- Gibraltar’s strong reputation and compliant with OECD and FATF standards.
- DLT framework in place since 1 January 2018 – selective approach taken to only allow reputable applicants.
- Common law legal system based on English law and legal system (the UK Privy Council is our final court of appeal).
- GFSC is based and operates on the same principles as UK FCA.
- Other jurisdictions (eg Malta) have been hit by numerous corruption scandals – Gibraltar has no such controversy.
- The only security token offering to date (as far as we know) that has been scrutinized and approved by the US SEC has been made by a Gibraltar company (INX Limited – it’s is public information). The comprehensive SEC approval process essentially consisted of an audit (and vote of confidence) by the SEC on Gibraltar’s legal framework and jurisdiction (including an analysis of our corporate and insolvency laws) .