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I. Introduction

Gibraltar has taken a proactive approach to regulating cryptocurrency. The government of Gibraltar introduced regulations governing the use of distributed ledger technology (DLT) in order to provide legal certainty to those operating within this framework, help with consumer confidence, and ensure that Gibraltar’s reputation and its financial sector is protected.[1] Gibraltar has established a regulatory framework for cryptocurrency exchanges, and is striving to “transform Gibraltar into an international centre of excellence for business working with DLT and in the cryptospace.”[2]

The Gibraltar Financial Services Commission (GFSC) is the regulator of the financial services market in Gibraltar and is responsible for regulating providers of such services that conduct business in Gibraltar and overseas. The GFSC must undertake this responsibility “in an effective and efficient manner in order to promote good business, protect the public from financial loss and enhance Gibraltar’s reputation as a quality financial centre.”[3]

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II. Tax Treatment of Block Rewards

Gibraltar currently does not have any taxation legislation or rules that apply specifically to cryptocurrencies.[4] Gibraltar is a low-tax jurisdiction with a territorial tax system in which companies are only taxed on profits that accrue in, or derive from, Gibraltar.[5] Tax legislation provides that any profits resulting from activities of a business that require a license and regulation under any law of Gibraltar are considered to derive from Gibraltar.[6]

Gibraltar does not impose capital gains, dividends, value added, or withholding taxes, including with respect to cryptocurrency transactions. While Gibraltar does have an income tax, if the “badges of trade” test is not met with respect to the sale of any cryptoassets, the activity would be deemed noncommercial and would represent a capital gain rather than income, and thus no tax would be chargeable.[7] Crypto exchanges are subject to the corporate income tax of 10% on any profits accrued in or derived from Gibraltar.[8]

A. Mining

There appear to be no taxation laws or policies that apply specifically to the mining of cryptoassets in Gibraltar. The government has stated “Gibraltar does not regulate mining operations primarily due to the unattractiveness of operating a mining operation in Gibraltar due to the high power costs required for substantive mining hardware.”[9]

B. Airdrops, Staking, Forging, and Forks

There appear to be ­no specific tax laws or policies in Gibraltar on airdrops, staking or forging for proof of stake cryptocurrencies, or forks in blockchains.

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Prepared by Clare Feiket-Ahalt
Senior Foreign Legal Specialist
January 2021

[1] Presentation, Siân Jones & Nicky Gomez, Gibraltar Financial Services Commission (GFSC), Gibraltar’s DLT Regulatory Framework: Turning the Vision into Reality 7 (Oct. 2017),

[2] Cryptofunds, Gibraltar Finance,

[3] Press Release, GFSC, Distributed Ledger Technology (DLT) Regulatory Framework (Jan. 2, 2018),

[4] Global Legal Assets, Blockchain & Cryptocurrency Regulation 2021: Gibraltar,

[5] Gibraltar: Blockchain Comparative Guide, Mondaq (July 7, 2020)

[6] Income Tax Act 2010, Act No. 2010-21, § 74,

[7] Income Tax Act 2010, § 11(4). See also Graham Jackson et al., Crypto Taxation: Not All Unknown, Financier Worldwide (Nov. 2018)

[8] Income Tax Act 2010, § 11(1) and Sched. 1.

[9] HM Government of Gibraltar, 2020 National Risk Assessment for AML/CFT and PF ¶ (Aug. 2020),

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Last Updated: 02/05/2021