+7 499 112-05-69Moscow
+44 20 3514-1096Tallinn
+38 044 379-30-62Kiev
Yuliya Barabash, 17.03.2018

Applying financial licenses in Gibraltar. EMI and DLT

In this article we will talk about obtaining of two types of financial licenses in Gibraltar.

Obtaining an DLT license in Gibraltar

In this article we will talk about obtaining of two types of financial licenses in Gibraltar.
EMI license in Gibraltar (full name Electronic Money Issuer Gibraltar license), and a fairly new DLT license (Distributed Ledger Technology), which is also issued by the Gibraltar regulator.

Let's see what types of activities are covered by these licenses and what is needed to be done to obtain a license in Gibraltar.

License for the payment system in Gibraltar (Electronic Money Issuer)

It should not be noted that the EMI payment license is not connected with the crypto currency or regulates the activity with the crypto currency. This license regulates the issue of electronic money and does not cover the work with the crypto currency as well as work with ICO.

In fact, the company holding the Electronic Money Issuer license is a full-fledged payment system. For example, the well-known PayPal payment system - is a company with an EMI license.

Key features of EMI license:

  • The payment company accepts from users the currency mainly from bank cards or swift transfers and in return issues electronic money that users receive in their personal account.
  • User wallets in the system can be in EUR, USD, BTC, any other alternative currency.
  • System users can exchange electronic money within the payment system.
  • Users can store electronic money in their wallets for an unlimited amount of time.

What license is needed for ICO?

On September 22, 2017, the Gibraltar Financial Commission issued a legal opinion on Initial Coin Offering. Thus, Gibraltar has joined a number of countries such as the United States, Hong Kong, Canada, Singapore, China, which were the first to issue legal opinions and official opinions about the sale of tokens and the regulation of ICO.

Obtaining a license for ICO in Gibraltar. DLT license

In its instructions for obtaining a DLT license, the Gibraltar Commission listed the basic principles that an organization that intends to conduct an ICO and issue tokens should meet. Honesty, transparency, an understandable plan of action are one of the main principles.

In addition, the Gibraltar Commission identified the types of tokens (security token, utility token).

How to obtain a license from Gibraltar for ICO?

It should be noted that those wishing to obtain a DLT license for the ICO in Gibraltar will need to personally come to a meeting with the regulator just before the application forms are submitted. At the meeting, you will need to talk about your intentions and plans, about how your team plans to protect and use the funds and what will eventually be received by investors.

We advise you to immediately prepare a business plan for 5 years ahead, since the commission asks questions not only for the coming year.

Further, if the commission likes your project and it gives a green light, you can start the process of filling out and submitting forms and applications, paying state duties and authorized capital.

Also, you shoud remember that the company holding the DLT license for ICO must have an office in Gibraltar, where the main management of the company should be located.

Conclusions. The benefits of obtaining a license in Gibraltar

If your project is interesting, long-term and transparent, and you need a guarantee that the regulator will assist the project, we recommend you to pay attention to Gibraltar.

Advantages of Gibraltar

  • Clear tax system, low tax rates.
  • Transparent regulation.
  • Friendly regulator.
  • Availability of licensing information.

The choice of jurisdiction and obtaining a license for the ICO, of course, is not an easy task.
In order to do everything right from the very beginning, it is better to apply to specialists with experience in the financial sphere.

For over five years we have been advising our clients in the field of corporate law, international tax planning, finance, international licensing and integrated business support in more than 40 countries.

We will be glad to help you.