Gibraltar as many of you already know is miles ahead of other European countries. Being miles ahead could be interpreted physically, as well as figuratively. You see Gibraltar was one of the first countries in the EU that saw the potential in cryptocurrencies and quickly started to work on a regulatory framework.
Ever since the cryptocurrency boom occurred, Gibraltar has been becoming sort of a safe spot for all the crypto powerhouses. The reason being is that these companies will actually have a license to operate. What does a license to operate mean for them? It means less change in their work ethics.
Why crypto companies like Gibraltar
To explain less change we would like to address an example. For example, a crypto company operating in Italy would have no license. Therefore they have only the law to abide by. Because of this unregulated environment, they are able to create a free yet healthy business ethics. In comes the regulation and all of their structures are destroyed, their profits down, so on and so on. So having a regulatory framework from the very beginning is something that companies are looking fro to have less and fewer fluctuations down the line.
A new Cryptocurrency Exchange
However, Gibraltar decided to step up their relationship with cryptos a level higher and gave a license to an official crypto exchange. The name of the company is Gibraltar Blockchain Exchange (GBX). Essentially they deal with Initial Coin Offerings and coin listings, the same services you’d find elsewhere.
The regulatory framework of Gibraltar is quite simple. There are only 9 commandments that the companies need to adhere to. Depending on how well the firm adjusts its business model to the regulation, they get a license of different levels. For example, a mediocre implementation would get them a Level 1 license, a sufficient one Level 2, and a really good one a Level 3. GBX was able to gain the Level 3 license, the highest there is.
According to reports the company had to make a live presentation for the financial watchdog. As you can clearly see it was a success, therefore gaining them the title of the first regulated crypto exchange in Gibraltar. Not only that but Gibraltar is now able to feature the world’s first Stock Exchange that owns a cryptocurrency exchange.
How did the exchange start?
Just like any other cryptocurrency related company, the exchange’s was given life through an ICO, that was able to raise more than #27 million. The process of making the ICO was quite easy for GBX as it was adhering to the country’s regulations, by being sponsored by the GSE (Gibraltar Stock Exchange). This is one of the laws in the country, that if a startup wants to launch and ICO it needs to have a credible sponsor to do it through.
GBX is not the first project, however. It may be the first to be featured by a Stock Exchange, but in terms of crypto relativity, Coinfloor takes the first place. It may not be the first Gibraltar based crypto exchange, however, it was the first Gibraltar regulated crypto exchange. All of this just tells us that no matter the recent crashed in the market, the cryptocurrency community is still devoted to trading and nurturing the asset. After such a bearish market, everybody is preparing for a bullish push, therefore its common to see new crypto exchanges and firms pop up around the world.