The Gibraltar Stock Exchange, a British territory, has received a takeover offer from a blockchain company called Valereum. The purchase, which is set to take place in the new year, if valid, could make the Gibraltar exchange the number one exchange where cryptocurrencies and stocks can be traded using cryptocurrencies. The organizers are currently reviewing this offer.
Gibraltar could become a haven for cryptocurrency
Gibraltar may make history as the territory in which the first hybrid exchange operates, with crypto assets and stocks available to investors. The main stock exchange in the UK, the Gibraltar Stock Exchange, has received a takeover offer from Valereum, a blockchain company. The company, which is based in Gibraltar, will seek to acquire 80% of the said exchange, with its actual owner, Global Stock Exchange Group, holding 20% of the company.
The two companies signed an option for this acquisition in October, with the company announcing its intention to complete this transaction. However, the acquisition details were not disclosed to the public. The option Show Document states:
The exercise of the option and the acquisition of 80% of the GSX (the “Acquisition”) is subject to approval by the Gibraltar Financial Services Authority (“GFSC”). Valereum will seek GFSC approval to establish GSX as one of the world’s first open, fully regulated digital exchanges.
The report also stated that the group will seek to incorporate the cryptocurrency into the exchange if the deal is approved.
The possible approval of the deal by the country’s regulators caused a chain reaction from experts and people watching the outcome. Richard Bolden, CEO of Valereum, is very positive about the deal, stating that this is a step in the evolution of digital assets on their way to becoming tradable on a global scale. However, not everyone is optimistic about this potential deal.
Many are hesitant about the impact that this would have on the oversight that other global regulatory groups, such as the Financial Action Task Force (FATF), could exercise on the country. Charlie Steele, partner at Forensic Risk Alliance, a consulting firm, says:
It can enable or facilitate money laundering, sanctions evasion and terrorist financing, so everyone is warning about that too,
Valereum has also signed a purchase agreement with Juno Group, a trust management firm that will be able to provide custody services for crypto assets acquired on the exchange, even if the transaction needs to be approved by regulators.
What do you think about Valereum buying the Gibraltar Stock Exchange? Tell us in the comments section below.
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