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Set Up a Cryptocurrency Company in Gibraltar

Set Up a Cryptocurrency Company in Gibraltar

Investors who wish to open a cryptocurrency company in Gibraltar are subject to several conditions, including obtaining a crypto license in Gibraltar under the conditions set forth by the Distributed Ledger Technology Regulatory Framework. Foreign investors who set up a cryptocurrency company will observe the general steps for company registration in Gibraltar, followed by obtaining the proper authorization in the form of a license from the relevant authorities. Our company registration consultants in Gibraltar can explain the formation process required to open a cryptocurrency company in Gibraltar.

 Quick Facts  
 Cryptocurrency seen as a legal tender (Yes/No) No 

Local regulatory agency

The Gibraltar Financial Services Commission

Special licenses for those who open a cryptocurrency company in Gibraltar

Subject to the Distributed Ledger Technology Providers Regulations 2017 which also includes licenses for certain activities

 Special licenses for those who open a cryptocurrency company in Gibraltar

The DLT Provider license

 Anti-money laundering rules

Generally applicable

The cryptocurrency companies are expected to observe the rules for market integrity.

Special requirements for investors who open a cryptocurrency company in Gibraltar

The investor does not need to have special qualifications.

Residency requirements for investors

No mandatory residency provisions

Types of companies used by those who open a cryptocurrency company in Gibraltar

Private and public limited companies

Minimum capital for a cryptocurency company in Gibraltar

No mandatory prescribed minimum 

Minimum number of shareholders 1 for the private company
Minimum number of directors

1 for the private company

Business license

Issued by the Companies House Gibraltar

 Mandatory requirements for the crypcoturrency company

 – observe the DLT regulatory framework for the technology,

– present the business model, business plan and founders, etc.

– have a company secretary as per the general particulars

Cryptocurrency company taxation

Income derived by DLT providers is taxed as per the usual corporate taxation rules.

The corporate income tax rate in Gibraltar is 12.5%.

Reasons to open a cryptocurrency company in Gibraltar

– a leading jurisdiction for blockchain companies,

– a legal and regulatory regime that embraces the growth of blockchain technology

– easy company formation in Gibraltar,

– full foreign ownership

Registering a cryptocurrency business in Gibraltar

The process to open a crypto company is the same as the one required to set up a company in Gibraltar in other business sectors. A special mention is that the company, once registered, will need to comply with the licensing requirements discussed in more detail below.

Our team summarizes the general steps for company formation in Gibraltar:

  1. Choose the company type: investors can choose to open a private or a public company in Gibraltar;
  2. Decide the company name and registered address: the name needs to be unique and mindful of prohibited words and a registered office based in Gibraltar is mandatory;
  3. Prepare the documents: the company incorporation documents for the creation of the crypto company can be drawn up with the help of our team;
  4. Register: the application for registration is accompanied by the filled-in form and the required documents and submitted to the Companies House.

The requirements for company directors and officers are the following:

  • A private company can have only one director.
  • Each company must have a secretary. For companies with only one director, he or she cannot also be the secretary;
  • The public company has at least 2 directors and a company secretary.

A cryptocurrency company can use the virtual office services provided by our team.

The application for a crypto license in Gibraltar is submitted after the company is duly registered.

Our Gibraltar company formation agents can assist investors during the company registration phase and with the license application.

The crypto license in Gibraltar

The Distributed Ledger Technology (DLT) license is granted by the Financial Services Commission after careful consideration.

Companies that wish to provide solutions as a virtual asset service provider (VASP), such as those for trading and storing crypto assets, need to submit an application and undergo a licensing process.

The DLT regulation was introduced in 2018 and the authorization process is based on several criteria, as well as a pre-application engagement from the company that wishes to obtain the VASP license in Gibraltar.

A company that applies for a crypto license in Gibraltar needs to comply with a set of principles related to:

  • business conduct based on honesty and integrity;
  • the use of risk management processes;
  • corporate governance effectiveness;
  • clear communication with clients;
  • adequate financial and non-financial resources;
  • resiliency and good contingency arrangements;
  • security controls meant to combat cybercrime and others.

The principles these companies are subject to have to do with the protection of customers who intend to use, trade, or store cryptocurrencies.

Companies that wish to obtain the DLT license, which is the crypto license in Gibraltar, submit the required documentation to the Financial Services Commission.

The distributed ledger technology license is intended for those companies that use this type of technology, whether in the form of blockchain or otherwise. 

The Gibraltar Financial Services Commission (GFSC) offers a streamlined authorization process for the VASP license in Gibraltar, however, this is a multi-step engagement that includes the following:

  • A pre-application evaluation of the company that wishes to become licensed;
  • The initial application assessment of the company – the non-refundable application fee (see below) is paid during this step;
  • The final application and presentation – the applicant has the chance to present how the company will meet the regulatory principles to the GFSC staff.

Many factors are taken into account by the GFSC before it issues a crypto license in Gibraltar. Some of these are presented below by our team specializing in company incorporation in Gibraltar:

  • How the company will be holding or controlling its client’s assets;
  • The types of customers it will be offering services to;
  • Any activities that will be outsourced to third parties (if applicable);
  • If the business model or the products/services have been successfully tested;
  • The scale of the business operation;
  • The company’s level of exposure to money laundering and/or terrorist financing.

The DLT authorization process

The application process for the crypto license in Gibraltar can be divided into three stages:

  • Stage 1: the applicant submits the filled-in application form, pays the application fee of £2,000, and provides information about the company controller and the source of the funds, as well as other sector-specific information and documents;
  • Stage 2: the applicant offers additional, comprehensive information about the business plan, corporate governance, IT infrastructure, risk management, anti-money laundering compliance, customer safeguarding, and others;
  • Stage 3: the applicant offers details about the proposed fee schedule, compliance structure, KPIs, operational resilience, internal audit, accounting, banking arrangements, professional indemnity insurance, and other information.

The GFSC carefully assesses the documents submitted in each stage of the application process and, if satisfied with the responses, it issues a decision for authorization.

Our company formation agents in Gibraltar can offer more information on the legislation related to cryptocurrency. We also invite you to watch a short video on these types of companies:

Additional requirements for crypto companies in Gibraltar

Once the company is registered and has obtained the VASP license in Gibraltar, it must set up a secure platform through which the transaction can be carried out.

Online shops can set up merchant accounts through which cryptocurrency can be accepted as a payment method.

A company in Gibraltar is subject to the following taxes:

  • 12.5% standard corporate income tax rate;
  • 20% corporate income tax for companies that abuse a dominant market position;
  • £51 maximum weekly and £221 maximum monthly employer contributions for social security purposes.

Gibraltar is a low-tax jurisdiction, an important advantage taken into account by investors who open a cryptocurrency company here.

If you want to set up a cryptocurrency company in Gibraltar and need assistance, do not hesitate to contact our local company registration advisors.