Gibraltar moves ahead with world’s first initial coin offering rules

UNTV News   •   February 12, 2018   •   4361

FILE PHOTO: Cryptocurrencies are seen on a website that tracks the value of initial coin offerings (ICO) in this illustration photo taken September 5, 2017. REUTERS/Thomas White/Illustration/File Photo

LONDON (Reuters) – Gibraltar will introduce the world’s first regulations for initial coin offerings with dedicated rules for the cryptocurrency sector whose fast growth has triggered concern among central bankers.

They are worried about financial stability and protecting consumers but regulators have so far adopted a patchwork approach to ICOs, ranging from bans in China to applying existing securities rules in the United States.

This has created legal uncertainty for transactions that sometimes straddle many countries.

An ICO involves a company raising funds by offering investors tokens in return for their cash or cryptocurrency such as bitcoin, as opposed to obtaining shares in the company from a traditional offering.

Over $3.7 billion was raised through ICOs last year, up from less than 82 million euros in 2016, a leap that has rung alarm bells among central bankers as some firms rush to issue tokens before new rules are introduced.

Gibraltar’s government and Gibraltar Financial Services Commission (GFSC) said lawmakers will discuss a draft law in coming weeks to regulate the promotion, sale and distribution of tokens connected with the British overseas territory.

The GFSC said it would represent the first set of bespoke rules for tokens in the world.

“One of the key aspects of the token regulations is that we will be introducing the concept of regulating authorized sponsors who will be responsible for assuring compliance with disclosure and financial crime rules,” said Sian Jones, a senior adviser to the GFSC.

The regulation will establish disclosure rules that require adequate, accurate and balanced information to anyone buying tokens, the government and Financial Services Commission said in a joint statement.

Central bankers have lined up in recent weeks to call for cryptocurrencies and ICOs to be regulated, saying that while innovation in finance can bring benefits, consumers must be protected.

“Tokens could post substantial risks for investors and can be vulnerable to financial crime without appropriate measures,” the finance ministers and central bank governors of France and Germany said in a letter on Friday.

“In the longer run, potential risks in the field of financial stability may emerge as well,” said the letter calling on the Group of 20 economies (G20) to discuss cryptocurrencies at their next meeting.

Gibraltar’s move is being closely watched by regulators from across the world, including Britain and Singapore, who may come forward with their own rules.

Jay Clayton, head of the U.S. Securities and Exchange Commission, said on Tuesday that tokens are securities and subject to the same investor protection rules as share offerings.

French markets watchdog AMF published a discussion paper last October on ICOs, but it has not yet said if it will push ahead with rules.

Gibraltar is looking to boost its thriving financial services industry beyond gaming after Britain, along with Gibraltar, leave the European Union in 2019.

It blazed a trail in January by introducing the world’s first bespoke license for “fintech” firms using the blockchain distributed ledger technology that underpins ICOs.

“We remain fully committed to ensuring that we protect consumers and the reputation of our jurisdiction,” said Albert Isola, Gibraltar’s commerce minister.

Gibraltar is also reviewing its rules for investment funds that involve cryptocurrencies and tokens.

($1 = 0.8159 euros)

Editing by Anna Willard

 

DOTr warns against malicious websites using Tugade’s name as clickbait

Aileen Cerrudo   •   September 10, 2020

The Department of Transportation (DOTr) is warning the public against malicious websites that use the name of Transportation Secretary Arthur Tugade as clickbait.

In an advisory, the department said these websites use Tugade’s driver’s license to lure internet users to a bitcoin website. The website requests users to supply personal information including phone numbers, email address, and passwords.

“The Department of Transportation (DOTr) is warning the public not to access and engage a malicious web page that uses a photo of a fake driver’s license of Transport Secretary Arthur Tugade as clickbait,” the advisory reads.

ADVISORYThe Department of Transportation (DOTr) is WARNING the public NOT TO ACCESS AND ENGAGE a malicious web page…

Posted by Department of Transportation – Philippines on Wednesday, September 9, 2020

The DOTr reiterates that the department and Secretary Tugade are not connected or affiliated with the said websites.

The department also reminds the public to be careful in accessing websites and providing information since it can be used for criminal purposes. AAC

Iran warns U.S. against tanker seizure attempt

Robie de Guzman   •   August 19, 2019

Iranian Foreign Minister’s Spokesman Abbas Mousavi (Image grabbed from Reuters footage)

An Iranian tanker headed through the Mediterranean towards Greece on Monday (August 19) after it was released from detention off Gibraltar as Tehran warned against any U.S. move to seize the vessel again.

The Grace 1, renamed the Adrian Darya 1, left anchorage off Gibraltar about 11 p.m. (2100 GMT) on Sunday (August 18).

Refinitiv ship tracking data showed early on Monday that the vessel was heading to Kalamata in Greece.

The seizure of the tanker by British Royal Marines near Gibraltar on July 4 on suspicion it was carrying oil to Syria in violation of European Union sanctions led to a weeks-long stand-off between Tehran and the West. It also heightened tensions on international oil shipping routes through the Gulf.

Gibraltar, a British overseas territory, lifted the detention order on Thursday (August 22) but the next day a federal court in Washington issued a warrant for the seizure of the tanker, the oil it carries and nearly $1 million.

Iran on Monday said any U.S. attempt to seize the tanker would have “heavy consequences” and that a crisis in Iran’s ties with Britain would not be over until the vessel reached its destination. (Reuters)

(Production: Kristian Brunse)

Singapore explores rules to protect investors in cryptocurrencies

UNTV News   •   March 2, 2018

Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, February 13, 2018. REUTERS/Dado Ruvic/Illustration

SINGAPORE (Reuters) – Singapore’s central bank is assessing whether additional regulations are required to protect investors in cryptocurrencies, an official said in a speech released on Thursday.

The city-state – which is aiming to be a hub for financial technology and so-called initial coin offerings in Asia – does not regulate virtual currencies and last year called for the public to exercise“extreme caution” over investment in cryptocurrencies.

Its central bank does regulate activities involving virtual currencies if they pose specific risks. For example, it imposes anti-money laundering requirements on intermediaries providing virtual currency services.

“We are assessing if additional regulations are required for investor protection,” Ong Chong Tee, deputy managing director (Financial Supervision), Monetary Authority of Singapore said.

Other countries such as South Korea, where trading in cryptocurrencies is more popular, are looking at ways to regulate that activity.

Reporting by Aradhana Aravindan and John Geddie; Editing by Kim Coghill

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