Gibraltar is one of the few European jurisdictions, which has an entire cryptocurrency regulation system as early as 2017-2018. At the same time, the number of licenses issued by this country is relatively small.
Country overview
#84
GibraltarCountry stats
Rating Points
145
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
5%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
18
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
100
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
1 600
Total amount of crypto users out of the country's total population based on public data.
Taxation points
35
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
18.5
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
No info
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Moderate danger
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Medium
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Basic
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
FATF grey list
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Cryptofund
This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.
ICO/STO
This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.
Good
Medium
Bad
Gibraltar has a low dangerous security level, according to our rating. Homicide level (1) is 3.2 per 100,000 inhabitants a year. At the same time, it has only 20 of 100 crime rated points based on Numbeo (2).
Looks like it’s possible to pay crypto in Gibraltar. However, we haven’t found exact confirmation in the laws. Costa Coffee, Card Factory, and Hotel Chocolat accept (3) crypto payments in the country.
Currently, we need more information about crypto salaries in Gibraltar. Please get in touch with us if you have such information.
In 2018, Gibraltar became (4) one of the first jurisdictions in the world to provide a purpose-built regulatory framework (5) for businesses that use blockchain or distributed ledger technology. Gibraltar FSC is the primary crypto regulator in the country.
According to Notabene's overview (6), AML and travel rules are basic crypto regulation principles in Gibraltar. The official document that regulates it is the VA AML Rules 2021 (7). According to it all, 'virtual asset service providers' to register and comply with the Proceeds of Crime Act 2015 and various anti-money laundering and counter-terrorist financing obligations
The last version of VASP regulations implemented in the country is Financial Services (Distributed Ledger Technology Providers) Regulations 2020 (8).
The Gibraltar Financial Services Commission (GFSC) in 2022 has provided (9) new principles for crypto regulation against market manipulation. According to it, a Distributed ledger technology (DLT) provider must “maintain the integrity of any market in which it participates”. Consulting company rue.ee has provided a short overview (10) of these regulations.
Details
According to the Financial Services Act, DLT Provider’s license is a license granted under section 8 of this Act to carry out the controlled activity of providing distributed ledger technology services.
Based on LawReview (11), Gibraltar is one the most popular crypto fund jurisdictions in the world:
Funds tend to be domiciled in the same jurisdictions as traditional hedge funds, with the top three being the Cayman Islands (34%), the United States (33%) and Gibraltar (9%)
According to the GFSC website (12), 14 licensed DLP providers are currently in the jurisdiction. The list of Virtual Asset Arrangement Providers (VAAP) includes four companies (13).
Based on CNBC (14), FTX, Huobi, and Bullish have licensed crypto entities in Gibraltar. Also, a blockchain firm, Valereum, has acquired the Gibraltar Stock Exchange. It plans to make it a globally regulated platform for crypto trading.
Bitso has also established (15) their European operations from Gibraltar.
Based on Coindesk (16) GFSC plans to implement new crypto regulations for DeFi and crypto lending.
| Tax name | Index |
| PIT tax Max | 28 |
| PIT tax Min | 6 |
| Corporate tax (CIT) | 12.5 |
| Max Individual CGT (for crypto) | 10 |
| Min Individual CGT (for crypto) | 0 |
| Wealth tax Max | 0 |
| Wealth tax Min | 0 |
PIT
Based on TheLawReview (17) individuals living in Gibraltar have 25-28% tax rate.
Individuals with gross assessable income exceeding £25,000 are taxed (under the gross income based system) as follows:
CGT
Based on Kathleen Di Paolo (18) is a European tax haven for crypto. It has no capital gain tax for crypto investments.
CIT
Based on PWC tax summaries (19) Gibraltar has 12,5% CIT flat rate. Previously the CIT rate was 10%. The country has double tax agreement with the United Kingdom and Spain.
1)List of countries by intentional homicide rate
3) Cointelegraph. The Costa’ Bitcoin on the rise: Major chains give Gibraltar a BTC boost. Article
4)ISOLAS. THE ROLE GIBRALTAR WILL PLAY IN THE FUTURE OF CRYPTO. Article
5)Gibraltar’s DLT Regulatory Framework Turning the Vision into Reality. PDF-file
6)Nota Bene. Crypto Travel Rule Regulations in Gibraltarbythe Gibraltar Financial Services Commission (GFSC). Article
7)Proceeds of Crime Act 2015 (Transfer of Virtual Assets) Regulations 2021. PDF-file
8)Financial Services (Distributed Ledger Technology Providers) Regulations 2020
9 and 16)Coindesk. Gibraltar's Government Targets Crypto Market Manipulation With New Rules. Article
10)RUE. CRYPTO LICENSE IN GIBRALTAR. Article
11 and 17)LawReview. Virtual Currency Regulation Review: Gibraltar. Article
12)GFSC. DLT Providers. Article
13)GFSC. Virtual Asset Arrangement Providers. Article
14)CNBC. CRYPTO DECODED. Gibraltar became a hub for crypto — now it wants to tackle attempts to manipulate the market. Article
15)Cointelegraph. Huobi Group is moving to Gibraltar following China crackdown. Article
18) The Most Crypto-Friendly Tax Countries. LinkedIn
19)Gibraltar. Overview. PWC