Structuring An ICO – Factors To Consider

The Government of Gibraltar has publically announced its intention to introduce regulations relating to, amongst other things, the promotion and sale of tokens in and from Gibraltar (the "ICO Regulations"). This regulatory regime shall complement and operate in parallel to the existing, recently established DLT Providers licensing framework, applicable to companies which transmit and store value belonging to third parties using distributed ledger technology. The Gibraltar Financial Services Commissions ("GFSC") has indicated that, whilst token sales themselves may not fall within the scope of the DLT Providers licensing framework, the ICO Regulations will provide rules and standards which an ICO launched or conducted from Gibraltar must comply with.