The stock exchange of Gibraltar, a British territory, has received a purchase offer by a blockchain firm called Valereum. The purchase, that is set to occur in the new year, if effective, might make the Gibraltar Stock Exchange the first bourse where cryptocurrencies and stocks could be traded with cryptocurrencies. Regulators are currently reviewing this offer.
Gibraltar could become a crypto paradise
Gibraltar could go down in history as the territory in which the first mixed exchange operates, with crypto assets and stocks available for investors. The UK’s main stock exchange, the Gibraltar Stock Exchange, has received an offer to buy from Valereum, a blockchain company. The Gibraltar-based company is reportedly seeking to acquire 80% of the said stock exchange, with its current owner, the Global Stock Exchange Group, retaining 20% of the company.
The two companies signed an option for this acquisition back in October, where the company announced its intention of completing this deal. However, the details of the acquisition had not been released to the public. The option reveal document states:
The exercise of the Option and the acquisition of 80% of GSX (the “Acquisition”) is subject to the approval of the Gibraltar Financial Services Commission (“GFSC”). Valereum will seek approval from the GFSC to establish the GSX as one of the world’s first fully regulated and integrated fiat and digital exchanges.
The report also stated that the group will seek to integrate cryptocurrency in the bourse if the deal passes.
Regulatory complications
The possible approval of the deal by regulators across the country prompted a series of reactions from experts and people watching the outcome. Richard Poulden, chairman of Valereum, is extremely positive about the deal and said it is a milestone in the evolution of digital assets as they become globally tradable. However, not all are so optimistic about this likely deal.
Many are hesitant about the effect that this could have on the oversight that other global regulator groups, like the Financial Action Task Force (FATF), could exert on the country. Charlie Steele, a partner at Forensic Risk Alliance, a consulting firm says:
This could allow or facilitate money laundering, the evasion of sanctions, the financing of terrorism, so everyone is wary of that too,
Valereum also signed a purchase agreement with the Juno Group, a trust management company that will be able to provide custody services for the cryptocurrency assets acquired in the exchange, even if the deal needs to be ratified by regulators.
