Gibraltar’s digital and financial services minister, Albert Isola, believes that if US regulators approve the launch of exchange-traded funds (ETFs) on bitcoin, other countries will begin to do the same.
Albert Isola suggested that the US Securities and Exchange Commission (SEC) may approve the launch of the first Bitcoin ETF this year. If this happens, regulators in different countries are likely to follow the lead of the SEC. However, the minister expressed concern about how further supervision over the management of funds will be carried out.
The SEC is currently considering several applications for the creation of tradable exchange-traded funds pegged to cryptocurrencies. Asset management company VanEck recently filed an application with the SEC to launch an ETF on ether, but the regulator has once again postponed its consideration. The department is in no hurry to resolve issues related to the launch of such ETFs, despite the growing pressure from companies.
“The licensing process raises no questions, but by what criteria will ETFs be monitored once they are approved? Who will be responsible? How will the emergence of such instruments affect the entire cryptocurrency market? ”Izola said.
Speaking about the development of the cryptocurrency industry in general, the Minister of Gibraltar expressed the opinion that regulators should take a reasonable approach to wider adoption of digital currencies. Note that Gibraltar is one of the world leaders in the “cryptocurrency race”, creating favorable conditions for the development of this industry.
So, the country began to control the ICO in 2018. More than a dozen cryptocurrency firms have already been licensed to operate in Gibraltar, including the eToro and Huobi trading platforms. In addition, in January, the Gibraltar regulator issued a license to cryptocurrency bank Xapo, which gave it all the powers of a regular bank.
The minister also touched on the topic of non-fungible tokens (NFTs), saying that they are particularly influenced by trends. According to Isola, “The current fashion for NFT is reminiscent of the time when people were actively using the word ‘blockchain’. At the same time, the politician believes that collectible tokens can become a valuable tool if they are used correctly.
When asked about the surge in popularity of cryptocurrencies such as DOGE, Isola urged traders and investors to treat them with the utmost caution. Before investing in such cryptoassets, you need to assess how durable they can be, what they are, and what their prospects are.
Recall that last fall, Gibraltar became a member of the Global Blockchain Business Council (GBBC), which develops blockchain in more than 50 countries.
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