Coinfloor a company formed in 2013 is the first cryptocurrency exchange platform to receive the legal papers to be in operations in Gibraltar. After a vigorous investigation of its system Coinfloor is glad to announce it can now offer its services to people in Gibraltar.
In a bid to attract foreign start-ups to do business within its borders, the Gibraltar government has put in place the distributed ledger technology regulatory framework. Through DLT the government can now give licenses to competent blockchain startups. The above legal structure is a first of its kind in the European region, and in the leading front is Gibraltar Island. With success it had in implementing the best legal frameworks for the online gaming industry, DLT will provide a conducive environment.
During the recent bear market run of 2018 Coinfloor experienced some hardships in its operations. The UK market had lessening demand which led to Coinfloor letting go of some of its staff. According to Obi Nwosu Coinfloor CEO, they had to lay off 40 jobs. He further explained and said;-
“The natural cycle of the market comes with challenges when its contracts and during the recent contraction we had to make appropriate changes. In this case, our team got affected we had to let go of some staff. It’s a challenge that comes with the market and is happening across this space.”
To arrive at this point, Coinfloor had to go through a thorough analysis of its system from the Gibraltar authorities. According to a report on Financial Times Gibraltar is focusing on quality and not quantity. For Coinfloor to become the first licenced exchange, they had to undergo a test comprising of nine principles. Through the analysis, local authorities vet if your security system in place is strong enough to prevent any cyber-attacks. Similarly, the test helps to ascertain the exchange level of anti-money laundering and know-your-customer measures.
While commenting on Gibraltar blockchain framework, Nwosu said;
“We were impressed with the DLT regulations in Gibraltar the authorities took their time and carried out an extensive analysis of the industry. The regulations are not only well thought out but are also well considered.”
Apart from Gibraltar striving to become the blockchain Island for tech startups, Malta is also putting in place a conducive framework. Although Gibraltar is in the leading front, some crypto enthusiasts are uncertain about Gibraltar since Brexit effect is unknown.