Infamous for being tax haven, Gibraltar is nearly set to become a prime cryptocurrency hub next year, as the territory preps itself for an overhaul of its financial industry.
Gibraltar-based blockchain firm Valereum is all set to buy the Gibraltar Stock Exchange (GSX), to turn it into the world’s first integrated bourse that will list both conventional bonds and top cryptocurrencies like Bitcoin, The Guardian reported[1] earlier today.
Crypto hub or tax haven
However, a number of roadblocks stand in the way of this British Overseas Territory, one of them being its minuscule regulatory body. Its small size makes this move even more decisive, as it could either see the enclave becoming a global crypto hub or shunned by the international community as a haven for financial crimes.
While Gibraltar has been actively regulating its cryptocurrency sector over the past few years, this latest move comes at a time when it is still struggling to shed off its global image as a tax haven due to the tax benefits it provides to offshore companies. It was only recently taken off[2] its neighboring Spain’s list of non-cooperating nations. This was done to ensure that the territory follows EU-level legislation in terms of tax transparency and works towards fighting financial crimes.
Albert Isola, who is Gibraltar’s minister for digital, financial services, and public utilities highlighted the same by noting that the territory has now overhauled its tax and information sharing policies, and regulating the crypto industry was having a similar effect in rooting out bad actors and protecting investors. He was quoted by The Guardian as saying,
“I don’t understand how there can be any increased risk in Gibraltar when you can go to any other European country today and run exactly the same business without
