Last year, Richard O’Dell Poulden, the owner of Valereum, announced his intentions to buy 80% of the stakes in the Gibraltar Stock Exchange (GSX). This move would create an integrated exchange where conventional stocks could be traded for cryptocurrency. If this deal is approved by the Gibraltarian financial regulator, it would make the British overseas territory the first stock exchange of its kind in the world.
Even if Gibraltar is known for
being a tax haven, it is slowly transforming into a global cryptocurrency and blockchain hub. According to Poulden, allowing
financial trades with virtual money will make it easier to monetise them on the
long run. Currently, converting cryptocurrency into state-issued currency on an
exchange can incur large transaction fees and capital gains taxes since their
rates vary wildly each day.
If Valereum obtains the GSX, the
transaction will operate as an ordinary stock exchange. As such, traders will
be able to use their virtual money to acquire stocks which will be held in a
trust company. If the deal is settled, Bitcoin, Ethereum, Tether, Cardano and
even the Dogecoin will be approved for trades. With over 2.3 million people
in the UK owning cryptocurrency at the moment, it is just a matter of time
until Valereum
secures the GSX.
Photo credit: Ilya Platonov on Flickr
Gibraltar is on its
way to becoming a crypto hub
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