The stock exchange of the British territory of Gibraltar has received a buyout offer by a blockchain firm called Valerium. The purchase, which is due in the new year, if effective, could make the Gibraltar Stock Exchange the first exchange where cryptocurrencies and stocks can be traded with cryptocurrencies. Regulators are currently reviewing the proposal.
Gibraltar could become a crypto haven
Gibraltar could make history as the region in which the first mixed exchange operated with crypto assets and stocks available to investors. The British territory’s main exchange, the Gibraltar Stock Exchange, has received a buyout offer from blockchain firm Valerem. The Gibraltar-based firm, along with its rightful owner, Global Stock Exchange Group, intends to acquire 80% of the said exchange, while keeping 20% of the company.
The two companies signed an option for this acquisition in October, where the company announced its intention to complete the deal. However, the details of the acquisition were not released to the public. The options document states:
The exercise of the option and the acquisition of 80% of GSX (“Acquisition”) is subject to approval by the Gibraltar Financial Services Commission (“GFSC”). Valerium will seek approval from the GFSC to establish GSX as one of the world’s first fully regulated, integrated legal and digital exchanges.
The report also states that the group will try to integrate the cryptocurrency into the exchange if the deal is passed.
regulatory complexities
The possible approval of the deal by the country’s regulators has caused a range of reactions from experts and those watching the results. Valerium President Richard Poulden is extremely positive about the deal, saying it is a step in the evolution of digital assets on the way to becoming tradable around the world. However, not everyone is so optimistic about this potential deal.
Many are hesitant that other global regulatory groups such as the Financial Action Task Force (FATF) could influence the country. Charlie Steele, partner at the consulting firm Forensic Risk Alliance, says:
It can enable or facilitate money laundering, evasion of sanctions, terrorist financing, so everyone is even more wary of it,
Valerium also signed a buyout agreement with Juno Group, a trust management firm that will be able to provide custody services for crypto assets acquired on the exchange, even if the deal needs to be approved by regulators.
What do you think about Valerium’s purchase of the Stock Exchange of Gibraltar? Tell us in the comments section below.
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