“I have Bitcoin for the benefit of my children,” says the Gibraltar MP
Located in Europe, on the southern tip of Spain, the British overseas territory of Gibraltar is a bubbling hotbed of cryptocurrency usage.
In an interview with Cointelegraph, Albert Isola, Gibraltar’s minister for digital and financial services and a member of the country’s parliament, explained Gibraltar’s approach to crypto and shed some light on his own investment interests.
Isola played a central role in shepherding Gibraltar’s purpose-built regulatory framework for distributed ledger technology (DLT). However, he is also a Bitcoiner.
Speaking from the ministerial offices in Gibraltar, he told Joe Hall “I have Bitcoin.” He continued:
“I’m not at the stage yet where it’s something I want to use regularly, it’s more about buying something to benefit my kids for years to come. I’m not touching it.”
While spending Bitcoin (BTC) at one of the Costa Coffee’s that now accept Bitcoin in Gibraltar might not be his thing, he explained that the use of Bitcoin is going to increase, “as more and more jurisdictions start to regulate it:”
“I’m not at the stage yet where it’s something I want to use regularly, it’s more about buying something to benefit my kids for years to come. I’m not touching it.”
Gibraltar is an appealing regulatory jurisdiction for crypto companies. Since 2018, when the DLT (Distributed Ledger Technology) legislation came into force, more and more companies have considered the European territory. Obi Nwosu, co-founder and CEO of Fedi, told Cointelegraph, “In the realms of regulated jurisdictions, Gibraltar has always been the most interesting.” He brought Coinfloor (now CoinCorner) to Gibraltar four years ago, following the 2018 regulations.
Xapo, a Bitcoin-based private bank, recently chose to open its international branch in Gibraltar. CEO Wences Casares is known as “Patient Zero” after orange-pilling Silicon Valley executives, while the Xapo offices are carved out of Gibraltar’s old military defences. Moorish fortifications dating back to 711 – the oldest ramparts in Gibraltar – now defend the office’s wine cellar.
Indeed, despite a small population of 35,000, the territory packs a punch in the crypto space. Crypto companies such as Damex and Tap.global have or had a presence in the small land area. In addition, the Mexican exchange Bitso entered into a partnership with Gibraltar late last year to digitize public services.
Still, regulation “is not a joke — it’s partner style,” Xapo chief technology officer Anouska Streets told Cointelegraph. Indeed, in recent months Gibraltar has rolled out rules to combat market abuse. Isola reinforced the point:
“If they [DLT companies] are not prepared to meet the standards of regulation and quality that we strive for, they will not be licensed.”
The government used the same strict but partnership-first process for the gaming space in 2014. Now around 75% of UK online gaming takes place from Gibraltar, from around 15 businesses, Isola reported.
Related: Andorra green light for Bitcoin and blockchain with Digital Assets Act
2018 was the last Bitcoin and cryptocurrency space bear market where DLT regulation materialized, and in the subsequent bull market of 2020 and 2021, Gibraltar reaped the rewards. In the bear market of 2022, or “down time”, as Isola delicately describes it, companies in Gibraltar are “very well positioned to take advantage of the upside and at the same time manage themselves in the down time:”
“I think our DLT firms are well positioned to ride the storms and then take advantage of the upside as and when it comes.”
While Bitcoin-backed businesses benefit from Gibraltar’s approach to regulation, in light of the recent Bitcoin bear market rally, Isola may be right to want to hold on to his Bitcoin for the next generation.
Cointelegraph visited Gibraltar to conduct the video interview which will contribute to Cointelegraph’s media coverage on Youtube. Subscribe here.
