The Gibraltar Financial Services Commission (GFSC) has reportedly made changes to the regulations determining the way DLT providers function, to include the latest Financial Action Task Force (FATF) laws.
Specifically, the GFSC reportedly disclosed that the initiative is its response against blockchain’s fast-moving nature, especially as the agency is looking to assist firms while still offering protection to its clients.
The amended guidance reportedly included the most recent FATF recommendations around virtual asset service providers (VASP) and the ‘Travel Rule,’ which need VASPs to carry out collection and transferring of client data in transactions.
GFSC reportedly suggested having different definitions for terms, nominally “virtual assets as ‘property,’ ‘proceeds,’ ‘funds,’ ‘funds or other assets,’ or other ‘corresponding value.’”
Under GFSC’s guidance, VASPs will reportedly need to capture and keep the current state of “robust and accurate records of transactions.”
Firms will reportedly have an obligation of updating potential investors and customers on risks around virtual assets and, along with any mandatory extra factors or onboarding tests.
“The release of the updated Guidance Notes is another important step forward in the development of the DLT Providers Regulatory framework that has proved so successful to date. It is also a significant milestone in the evolution of our regulations as we embark on the road to achieve ongoing FATF compliance. My thanks go to all parties involved in delivery of these updates.” Gibraltar Minister for Digital and Financial Services Albert Isola reportedly remarked regarding the updated guidance’s power to bridge the gap throughout the territory, for satisfying evolving international regulations.