ISOL AS LLP
RECEPTIVE AND PROGRESSIVE ATTITUDE supports digital evolution BY JONATHAN GARCIA
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s new regulation modernises the rules relating to limited partnerships and the opportunities presented by digital assets, Gibraltar is expecting new crypto companies to establish themselves in the jurisdiction. The territory has managed to attract some of the largest crypto businesses seeking to be regulated within a framework which was specifically designed for this purpose. In hopes of replicating the success achieved in the gaming industry within the blockchain space, Gibraltar has chosen to step out of the regulatory “sandbox”, in the same way as it did back in the gaming days. “Gibraltar is providing legal certainty and allowing businesses to operate within a purpose-built legislative framework,” outlines Jonathan Garcia, partner at ISOLAS, “In doing so, it considers that a flexible, adaptive approach is required in the case of novel business activities, products and business models. Further, while regulatory outcomes remain central, these are better achieved through the application of principles rather than rigid rules.”
GIBRALTAR IN FOCUS 2022 | JANUARY
This is because, for businesses based on rapidly evolving technology, like those in the digital assets space, such hard and fast rules can quickly become outdated and unfit for purpose, he adds. Accordingly, Gibraltar’s principles-based framework is based on risk and proportionality and is outcome-focused yet robust.
A VIRTUOUS CIRCLE OF GROWTH
As the domicile continues to innovate to accommodate players in the crypto space, industry experts anticipate new market entrants looking for a base are likely to follow established players who have already selected Gibraltar as their jurisdiction of choice. Garcia outlines, “I expect we will see more of them come, it is like a virtuous circle of growth. “The advantage we have is that we are a small jurisdiction that can adapt quickly to change. We have proven our ability to do so, and as a result, firms locate themselves here accordingly. Our
favourable business environment and ‘right touch, not light touch’ stance on regulation are also key drivers of business. We look forward to these continuing for years to come.” The innovative spirit in Gibraltar has arguably been further fuelled by growing competition in the digital assets and crypto space, which challenges incumbents to do new things. “Regulators in Gibraltar are always keen to learn from industry and other jurisdictions to ensure our landscape is the most attractive it can be. Due to our dynamic size, industry developments are quickly reflected in our legislation and regulation. We are
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