Blockchain will replace egaming in Gibraltar, says crypto expert

Crypto and blockchain is likely to take over egaming as the main driver of the Gibraltar economy, according to cryptocurrency pioneer and founder of the Bitcoin Foundation, Jon Matonis.

Speaking to local news outlet GBC, Matonis said the transition will take five to ten years with the egaming hub’s financial services regulator currently processing 35 applications for distributed ledger technology (DLT) licences.

Earlier this month, Gibraltar’s financial services and gaming minister, Albert Isola, said in his budget speech Gibraltar had 30 active egaming licensees on the Rock following a spate of industry consolidation last year.

The jurisdiction has been actively seeking new DLT and blockchain business since it began working on one of the first DLT regulatory frameworks in February 2018.

Since then industry leading companies Xapo, eToro, Huobi, Gnosis and Oxygen have established businesses in Gibraltar.

Isola said the regulator was also working on a number of DLT and crypto currency proposals in the gaming space.

He admitted that the potential fallout of a hard Brexit would require the Rock to be flexible in its regulatory approach to new technologies.

“Gibraltar should be prepared to be an incubator for selected technology firms and this requires a shift in mindset and more flexible legislation,” Isola said.

In his budget speech, Isola also announced he was cutting egaming tax across all verticals to 0.15% of gross revenue.