The crypto-friendly offshore destination is attractive to an increasingly crypto-focused eToro.
eToro has been holding discussions with Gibraltar officials about opening a subsidiary in the country. According to sources with knowledge of the matter, the CEO of the social trading brokerage has met with the Minister for Commerce, Albert Isola.
Earlier this week, eToro announced that it is expanding its operations into the US. The CEO of the company, Yoni Assia, updated Minister Isola on the progress of the firm’s plans to establish a subsidiary in Gibraltar.
The British Overseas Territory, which is located in the southern point of the Iberian Peninsula, has been a significant hub for the gaming industry for many years and is now making a big push to become a crypto-friendly destination.
eToro’s management team visited Gibraltar last week for meetings with the Gibraltar Financial Services Commission (GFSC) and took the opportunity to meet with Chief Minister Fabian Picardo QC and Minster Isola.
The social trading brokerage shared its plans to expand its business with a Gibraltar subsidiary, which at this point are at an advanced stage. The company’s pivot was made as Gibraltar announced a friendly Distributed-Ledger Technology (DLT) regulatory framework. It was introduced at the beginning of January 2018. A draft bill on the governance of ICO’s is expected to be voted in by October this year.
Diversifying Regulatory Destinations
Companies in the trading industry are looking for new destinations to diversify their regulatory exposure. The introduction of the new pan-European regulatory framework for retail brokers earlier this year has stimulated brokers from the industry to look into alternative destinations.
As already mentioned, Gibraltar has been a safe haven and a hub for the European gaming industry for way over a decade. With a corporate tax rate of 10 percent, the country is an attractive proposition for firms looking to optimize their cost base. Not only that, but Gibraltar has been very voiceful about welcoming the emerging blockchain and crypto industry.
Work Labs, Eurotowers, Gibraltar. GX11 1AA