Last week, during a Hassans DLT webinar hosted by the Legal 500 I was asked, along with Anthony Provasoli and Aaron Payas, about cybersecurity issues in the context of the metaverse. This was part of a wider discussion about how Gibraltar approaches DLT, the kind of work we see flowing thorugh the jurisdiction in 2022 and how Gibraltar is dealing with the ever-present cybersecurity threat.
Gibraltar’s regulatory environment for financial services on DLT/crypto, requires licensees to take strong safeguards to protect customer assets in much the same way other financial institutions are so required. Clearly the technical aspects of these protections differ in the crypto context, and there are particular nuances in how assets are protected in that space versus traditional finance. The fact that such requirements are made of Gibraltar licensees in this particular space, we believe, enhances the safeguards available to end users/investors and offers comfort in a way unregulated markets can’t.
Striking the balance of applying practical regulatory principles to the regulation of industries like gaming/gambling and, latterly, crypto, is something of a specialist subject for Gibraltar’s professional and legal services industry of which we’re rightly proud.
In the context of increasing tensions, not just on the Ukraine border and in respect of the players in that equation, the risks of state actors seeking to compromise the integrity of the traditional financial system are also growing. Wherever financial services are being provided, whether in a traditional or Fintech context, investment in cybersecurity should remain a key priority in the pursuit of the best protections for customers and the integrity of the system as a whole.
Taking cybersecurity seriously is a sine qua non for Gibraltar licensees and prospective applicants.