If you were wondering if there could ever exist a regulated stock exchange platform to regulate the blockchain space, you finally have an answer, the Gibraltar Blockchain Exchange.
This platform is all that you have been dreaming about and a lot more. It is a platform through which token sales undergo an assessment through the sponsor firm process, strict AML, due diligence and KYC. This platform also offers legal confirmations by the token’s utility and admission only reserved for the high-quality listings which have sound business models allowing contributors to participate confidently.
The Gibraltar Blockchain Exchange (GBX), The Crypto Harbour is a subsidiary of the EU-regulated Gibraltar Stock Exchange (GSX). GBX promises to offer guidance and to have operational standards that will help bridge the gap between the traditional finance and the next generation technology-driven digital finance.
Measures put in place to ensure efficiency of GBX
The GBX plans to be the world leading institutional-grade token sale platform, and also a cryptocurrency exchange platform. For these, it leverages the powerful management expertise and the regulatory experience of the Gibraltar Stock Exchange, the parent company. The experience and best industry practices will lead to the creation of high standards for the governance of token listing admissions, and for the trading of the tokens and the cryptocurrencies. A legal framework to govern all these exists.
License and compliance
By using rules and a sponsor-based system, GBX aims to be a market leader in regulated token sales and cryptocurrency exchange. For this, GBX will apply for a license under the GFSC Financial Services DLT regulatory framework by Q1 2018.
Sponsor Staking Mechanism
The biggest strength of the GBX platform is built around its credibility that is enhanced through the implementation of an accountability mechanism called the Sponsor Staking.
Sponsor Staking is a mechanism that ensures that all token issuers appoint a GBX-recognized Sponsor Firm for them to get listed. The sponsor firms have to be in the blockchain industry and qualified to take the companies from inception, all the way to token listing.
The sponsor firms which agree to sponsor the startups also go through staking and the designated amount of Rock Tokens are stakes and held in the GBX escrow account for a stipulated duration. This is a stealth move which ensures that the Sponsor firms have a vested interest in the performance of their clients. This also ensures that the issuers adhere to the high GBX standards.
Rigorous listing process
GBX will apply the first in class principle and high GSX standards, and also establish a network of sponsor Firms known to uphold a high reputation, quality, and high integrity.
The listing process starts with endorsements by a sponsor firm which runs a preliminary review based on GBX guidelines.
Then, a high-entry bar is set in a controlled environment for prime token listings. This is achieved through processing of the applicants with high-quality white papers, as well as applicants with satisfied due diligence parameters meeting GBX Listing Rules. Lastly, the staking mechanism ensures that all sponsor firms shared ethos to grow the GBX.
The GBX – GSX Ecosystem
The ecosystem consists of three divisions namely, the exchange, services, and the e-money division.
- Exchange division – it deals with GBX Token Sales Platform, GBX Cryptocurrency Exchange, GSX Main and Global Market (Funds, Debts), and GSX Tokenised Securities Exchange.
- Services division – this includes the Juno Fund Services Limited which will provide fund and corporate services, solutions and support.
- E-money division – this platform aims to facilitate business transactions as well as the provision of services to issuers and users strengthening the ecosystem. HE e-Money institution will also support Rock token while permitting users to store and trade cryptocurrency, tokens and the tokenized securities on GBX and GSX.
All these systems and measures ensure that GBX offers world-class services.
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