Gibraltar, a British overseas territory, which was once a tax haven, will now be transformed into a global crypto trading hub. Right now, a proposal from Valereum, a blockchain firm, is being reviewed by the authorities. The proposal involves the firm acquiring the Gibraltar Stock Exchange (GSE). If the proposal is accepted, Gibraltar will become a platform for trading in crypto tokens such as Bitcoin and Dogecoin.
In the best-case scenario, Gibraltar will become one of the global crypto market’s most important players and benefit from the booming crypto market. However, if regulations are loose, there’s a chance that the British overseas territory may suffer reputational damage along with potential diplomatic sanctions. Both the Gibraltar Stock Exchange and Valereum have so far been quiet about the pending deal.
This news is yet another example of the rise and present-day prominence of cryptocurrencies. When cryptocurrencies like Bitcoin started to operate, many had written them off as nothing more than fanciful ideas. However, their importance and relevance have gone from strength to strength in recent years, and the cryptocurrency industry is slowly and steadily making its moves into the mainstream.
While many crypto investors have profited from the industry, there are many who question the potential of the crypto industry to destabilize existing financial frameworks. The decentralized nature of cryptocurrencies also makes them prone to be used by criminals for illegal activities. Different countries have adopted different approaches towards them as well. For instance, the Latin American country of El Salvador legalized Bitcoin earlier this year. However, China launched a brutal offensive against crypto operations in the country.