DLT businesses and investment funds
Gibraltar regulates certain DLT service providers, but holding digital assets in a fund does not automatically make that fund a DLT provider. A separate perimeter assessment is needed for custody and other activities.
Fund structures
Crypto exposure does not create a separate fund-law category. Private schemes are governed by section 293(4)(b) and Schedule 24 Part 2 of the Financial Services Act 2019; EIFs by the Financial Services (Experienced Investor Funds) Regulations 2020. A private scheme's constituting instrument must not authorise more than 50 participants. Separately, a qualifying private promotion must be communicated to no more than 50 persons, not to the general public, and must satisfy the other conditions in Schedule 24. EIF investor eligibility follows regulation 3 and cannot be reduced to an investment amount alone. See Guidance Note 31.
Valuation of tokens and DeFi
Illiquid and locked tokens require a documented valuation methodology approved under the fund's governance arrangements and reviewed with its auditor as appropriate. Any discount must be evidenced by the characteristics of the position; there is no standard 10–50% discount. Define pricing sources, cut-off times, treatment of forks and staking rewards, and exception escalation.
Custody arrangements
Assess private-key controls, segregation, counterparty risk and independent reconciliations. For private schemes within regulations 18B and 18C of the AIFM Regulations, safe-custody and administrator arrangements are distinct, subject to the applicable GFSC exemption powers.
AML and on-chain risk
In-kind subscriptions require risk-based source-of-funds and sanctions checks. Mixer exposure is a risk indicator to investigate, not by itself an automatic statutory rejection rule. Escalate suspicion and report to the Gibraltar Financial Intelligence Unit when the legal threshold is met; apply sanctions and other applicable controls.
Banking
Banking access depends on risk appetite, activity, counterparties and documented controls. Engage prospective providers early and disclose the fund's asset and investor profile.
NAV calculation
Use documented pricing hierarchies and independent reconciliations for wallets, custodians, DeFi positions and fiat balances. Directors oversee valuation policy and material exceptions.
2025 AIFM administrator rules
The 2025 change is based on manager and fund classification, not a crypto-specific rule. An EIF must appoint a GFSC-authorised administrator. For private schemes, the 2025 AIFM rules impose a local Part 7-licensed administrator requirement on qualifying self-managed small AIFMs (and through an external AIFM where regulation 10A applies); the GFSC can grant specified exemptions or permit a licensed company manager instead. Classify the vehicle and manager first. See regulations 10A, 18B and 18C of the Financial Services (Alternative Investment Fund Managers) Regulations 2020 as amended.