Gibraltar Stock Exchange Creating Crypto Hub

December 29, 2021

After decades of maintaining a reputation as a financial haven for investors and corporations, officials in Gibraltar are attempting to reshape the territory’s image by allowing it to become a global, regulated hub for cryptocurrency investing.

According to a recent article from The Guardian, the blockchain firm Valereum is attempting to purchase Gibraltar Stock Exchange (GSX), and convert it into a hybrid market for both traditional and crypto investments. However, because of the recent crackdown on illegal financial activity within the territory, the exchange would be entirely regulated by the government.

The task is certainly ambitious, considering the Gibraltar Stock Exchange currently has only three employees, and would require an immense amount of regulatory overhaul to ensure the system works efficiently. But the surging interest in digital currencies could make this a golden opportunity for Gilbralter to morph its reputation as a hub for crypto.

Some experts are not so sure about this plan. If Valereum is successful in its attempt to purchase the exchange, it would obviously be a massive economic opportunity for both Gilbraltor’s government and business sector. But the GSX could potentially face sanctions from other countries, due to lacking safeguards, or if the exchange allows crypto firms with ties to criminal activity to participate. Despite this being a realistic possibility, Albert Isola, Gibraltar’s Minister for digital, financial services and public utilities, told The Guardian the exchange would not be much different from any other country’s crypto activity.

“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 being supervised, without being licensed, and without being regulated. So how can we be more exposed by regulating them? It’s completely the opposite,”

If the deal turns out to be successful, Gibraltar could be the crypto Mecca on the world stage. But seeing the increasing value and future potential of this new form of currency, other countries will likely fight to keep Gibraltar out of the game.

Edited by Maurice Nagle

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