Paul Astengo, Senior Executive at HM Government of Gibraltar, discusses Gibraltar’s role as a global hub for Distributed Ledger Technology (DLT) and cryptocurrency innovation. He highlights the contributions of Gibraltar Finance in promoting the financial services sector and fostering collaboration between the industry, public sector, and government.
Astengo, Senior Executive at HM Government of Gibraltar, has extensive experience in the financial sector, spanning many years and numerous jurisdictions.
Paul has contributed to Gibraltar’s growth as a regulated international finance centre. Beginning his career in key roles at major banks across Gibraltar, London, and Spain, Paul gained expertise in wealth management and international banking.
Currently focused on promoting Gibraltar’s financial services, he utilises his regulatory knowledge to attract global businesses. Following his work as co-chair of the cryptocurrency working group, Paul co-founded the Gibraltar Association for New Technologies (GANT) and played a foundational role in New Technologies in Education (NTiE), contributing to Gibraltar’s educational and blockchain innovation efforts.
Introduction
Upholding the core tenets of collaboration, security, and innovation, Gibraltar Finance has been at the epicentre of distributed ledger technology (DLT) since early 2018. This article will highlight the substantive and impactful work done by the organisation, and how Gibraltar has created an ecosystem of growth and prosperity for virtual asset service providers (VASPs).
Overview of Gibraltar Finance
Gibraltar Finance is the platform for the promotion of Gibraltar’s vibrant financial services sector to the world, ensuring that Gibraltar effectively showcases its position as an international finance centre of excellence. Among its core responsibilities, Gibraltar Finance aims to foster interaction between the financial industry, public sector, and government, enabling collaborative discussions on strategic and policy matters related to digital assets and other areas of financial services. The team at Gibraltar Finance comprises professionals with extensive expertise spanning diverse financial areas of interest.
Gibraltar’s strategic advantages
Gibraltar, with its unique status as a British Overseas Territory, member of the Commonwealth, and neighbour to the EU, has emerged as a pivotal service provider in the global virtual asset landscape in the past 10 years. Our strategic positioning offers distinct advantages that propel Gibraltar to the forefront of the crypto industry. Against the backdrop of regulatory innovation and development in the UK and the EU, Gibraltar remains a longstanding hub of digital asset regulatory excellence.
As an overseas British Territory, Gibraltar’s long-standing connection with the UK lends a sense of stability and credibility that resonates globally. In 2022 alone, Gibraltar processed almost
60 per cent of online gambling from the UK as well as insuring one in six cars driven on UK roads. Collaboration between Gibraltar and the UK bolsters investor trust, attracting both established players and emerging startups to the jurisdiction.
Similarly, the geographical proximity of Gibraltar to the EU positions the territory as an attractive alternative location for companies left concerned by the emerging MiCA regulations and searching for alternative options. However, above all else, while Europe and the United Kingdom both continue to implement their own corresponding legislations over the digital asset sector, they need only look as far as Gibraltar, the very first jurisdiction globally to introduce legislation around DLT, and who has since asserted its position as a leading blockchain and virtual assets hub.
Gibraltar’s progressive regulatory framework
Spotting a gap in the market, the DLT Regulatory Framework was designed to position Gibraltar as a jurisdiction that encourages innovation while simultaneously upholding regulatory and strategic objectives, and it has delivered on this aspiration over the last five years. Acknowledging the need for quick and effective interaction between regulators and businesses in this rapidly evolving sector, Gibraltar trailblazed the foundations of VASP and DLT regulation across the globe.
Government support and initiatives
The government of Gibraltar has demonstrated a proactive approach towards fostering digital asset innovation and education within its community. One significant initiative is the establishment of Gibraltar’s Digital Skills Academy which serves as a pivotal platform for equipping individuals of all ages with the necessary expertise and skills in the realm of digital assets.
Furthermore, the collaboration between H.M. Government of Gibraltar and the University of Gibraltar to offer courses that include technology and entrepreneurship is a testament to our jurisdiction’s commitment to enhancing educational opportunities. Courses such as the ‘Professional Certificate of Competence in Blockchain & Smart Contracts’ provide students with a comprehensive understanding of the intricacies, applications, and potential of blockchain, thereby nurturing a workforce well-versed in this transformative field.
Gibraltar’s collaborative ecosystems
Working towards a better ecosystem for all VASPs, in April 2022, H.M. Government of Gibraltar updated our pre-existing regulatory framework to include a tenth core principle on market integrity. In an effort to ensure continuity and fit-for-purpose regulatory guidelines for all, this principle mandates all DLT providers operating in Gibraltar maintain or enhance market integrity through their operations.
Developed collaboratively by the GFSC and a specialised Market Integrity Working Group, the new rule addresses concerns such as market manipulation and insider trading and emphasises the establishment of disclosure and trading standards. Both the Market Integrity Working Group and the resulting regulatory principle were, and continue to be, an exercise in collaboration and progress for the betterment of this emerging sector.
Gibraltar’s vision for the future
Gibraltar’s vision for the future is firmly rooted in its commitment to remaining a pioneering force in the area of digital innovation and financial technology.
We are constantly looking for new ways to maintain our status as a jurisdiction that nurtures digital asset innovation. As it stands, the Gibraltar Financial Services Commission has initiated a consultation on the approach taken by the regulatory body in processing licence applications. The objective is to create a fresh methodology for handling applications, focusing on streamlining the process into distinct phases and addressing crucial areas of importance at the initial stage of the applications.
We have an enduring commitment to upholding fairness and trust in the virtual asset sector both at home and abroad. By maintaining a focus on innovation, education, and collaboration, Gibraltar is poised to shape a future that embodies progress and integrity in the evolving landscape of financial technology.
