Cryptocurrency is legal in Gibraltar under the comprehensive Distributed Ledger Technology Regulatory Framework, which became effective on January 1, 2018, making Gibraltar the first jurisdiction worldwide to provide specific legislation for DLT-related businesses. The Gibraltar Financial Services Commission regulates DLT Providers, which include cryptocurrency exchanges and wallet providers that store or transmit value belonging to others using blockchain technology (1). The framework adopts a principles-based and outcomes-focused approach that emphasizes flexibility and adaptability, allowing regulations to evolve alongside rapidly changing technology (1).
DLT Providers must obtain licenses from the GFSC to operate legally, complying with ten core regulatory principles covering conduct of business, client asset protection, financial crime compliance, and system security requirements. The staged application process introduced in January 2024 involves three stages taking up to nine months maximum, with stage one familiarizing regulators with business models and key personnel taking five months, followed by stages two and three requiring two months each (2). Major cryptocurrency companies including eToro, LMAX Digital, Xapo, Bitso, and Currency.com have established operations in Gibraltar under the DLT Framework (2).
"The GFSC adopts a flexible and adaptive approach when dealing with novel business activities, products, and models. They believe that regulatory outcomes are best achieved through the application of principles rather than rigid rules."
Gibraltar operates a territorial taxation system with a 15% corporate tax rate applied only to profits accruing in or deriving from Gibraltar, with no capital gains tax, inheritance tax, or tax on passive income. DLT Providers must maintain physical presence in Gibraltar including office space and local employees, while also registering as Virtual Asset Service Providers under anti-money laundering regulations governed by the Proceeds of Crime Act 2015 (2). Gibraltar is not subject to the EU's Markets in Crypto-Assets Regulation following Brexit, though its existing framework aligns with similar regulatory principles, attracting businesses that establish dual operations in both Gibraltar and EU jurisdictions to serve global and European markets (2).
Source:
https://www.gibraltarfinance.gi/technology/distributed-ledger-technology
https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/gibraltar
Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
