The Gibraltar Stock Exchange or GSX is a rocky little olive grove nestled off the Mediterranean coast. Once known as a tax haven, Gibraltar gets a fresh start as a global hub for cryptocurrency trading. The area has hit the news because a corporate takeover has the potential for global consequences.
The Proposal to Become a Cryptocurrency Hub
A proposal from Valereum, a blockchain firm, is being reviewed by the British Overseas Territory. This will allow the area to serve as a trading platform for dogecoin and bitcoin along with their traditional bonds.
It is worth noting that Gibraltar only has 33,000 people. There are 82 employees in the regulator that oversees the financial sector. That sector is crucial to Gibraltar’s economy, accounting for a third of it.
What It Means for Gibraltar
This news comes from the Guardian, which also notes two possible outcomes for Gibraltar. If all goes well, the fact that the cryptocurrency market is hot will help the territory. On the other hand, a poor outcome could mean damage to reputation, as well as potential diplomatic trouble.
The idea puts Gibraltar at an overall risk for potential reputation damage and more sanctions, but the potential benefits are looking like they outweigh the risk.
Part of Gibraltar’s Efforts to Shed the Tax Haven Label
The push to become a cryptocurrency hub is also part of Gibraltar’s push to overcome its reputation as a tax haven. The territory has even sued a Spanish newspaper as part of its attempts not to be known as an offshore haven.
The minister for public utilities, financial services, and digital, Albert Isola, admits that the territory was a tax haven two decades ago. However, he points out that it has since overhauled its information sharing and tax policies.
How Crypto Plays Into that Reputation
Isola hopes that becoming a crypto hub will further this change. It should help provide assurance to investors and root out bad actors. He points out that firms in Gibraltar would be regulated and licensed, which is not the case in most other areas of the world. As such, bad actors will not want to use crypto in Gibraltar.
What It Means for Cryptocurrency as a Whole
This is just another indicator that bitcoin, dogecoin, ether, and other cryptocurrencies are here to stay. The value explosion is not likely to diminish in the near future. This is thanks in part to figures like Elon Musk talking about dogecoin on venues like Saturday Night Live. Jack Dorsey also contributed with a name change to his payment company, Block over the former Square. No mainstream consumers are taking a greater interest in crypto.
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