Regulatory Settlement Agreement Between GFSC and Bitfrost Limited, Gibraltar Company
Summary
A Regulatory Settlement Agreement (RSA) has been entered into between the Gibraltar Financial Services Commission (GFSC) and Bitfrost Limited (incorporation number 121665), a Gibraltar-registered Virtual Asset Arrangement Provider, dated 27 April 2026. The settlement results in the cancellation of Bitfrost Limited's registration as a Virtual Asset Arrangement Provider. The firm failed to meet regulatory requirements under the Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021, specifically because its designated Money Laundering Reporting Officer failed to meet the fit and proper threshold.
“The GFSC and Bitfrost Limited Gibraltar have agreed for the registration of the firm to be cancelled.”
Virtual asset service providers registered with the GFSC should conduct immediate reviews of their Money Laundering Reporting Officer arrangements to confirm compliance with fit and proper standards. The Bitfrost case demonstrates that MLRO underperformance can be a direct cause of registration cancellation, regardless of other compliance efforts. Firms whose MLROs may not fully satisfy the threshold should engage qualified替代 candidates or seek GFSC guidance proactively, as self-reporting and transparency (as demonstrated here) did not prevent the ultimate regulatory outcome.
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GovPing monitors Gibraltar FSC News for new banking & finance regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 7 changes logged to date.
What changed
The Gibraltar Financial Services Commission entered into a Regulatory Settlement Agreement with Bitfrost Limited on 27 April 2026, resulting in the cancellation of the firm's registration as a Virtual Asset Arrangement Provider. Bitfrost Limited acknowledged that, following its operational launch in November 2023, certain regulatory requirements under the Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021 were not fully met, specifically due to the underperformance of its designated Money Laundering Reporting Officer who failed to meet the fit and proper threshold.
Virtual asset service providers operating under Gibraltar's DLT regulatory framework should review their MLRO arrangements to ensure compliance with fit and proper standards. The MLRO function is critical for AML compliance, and failures at this level can result in registration cancellation. Firms should assess whether their designated MLROs have the requisite competence, resources, and independence to fulfil their regulatory obligations effectively.
Archived snapshot
Apr 27, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Statements
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Regulatory Settlement Agreement between the Gibraltar Financial Services Commission and Bitfrost Limited
27 Apr 26
Public statement on Bitfrost Limited
A Regulatory Settlement Agreement (RSA) has been entered into between the Gibraltar Financial Services Commission (GFSC) and Bitfrost Limited, a Gibraltar company with incorporation number 121665 (Bitfrost Limited Gibraltar). Bitfrost Limited Gibraltar was registered with the GFSC as a Virtual Asset Arrangement Provider.
Bitfrost Limited Gibraltar acknowledges that, following its operational launch in November 2023, certain regulatory requirements under the Proceeds of Crime Act 2015 (Relevant Financial Business) (Registration) Regulations 2021 were not fully met.
The firm further acknowledges that the failures arose due to the underperformance of, and through the actions of, its designated Money Laundering Reporting Officer, who failed to meet the fit and proper threshold.
This RSA has been reached through a collaborative process and Bitfrost Limited Gibraltar has demonstrated an open and transparent approach in dealing with the GFSC.
Regulatory Outcome
The GFSC and Bitfrost Limited Gibraltar have agreed for the registration of the firm to be cancelled.
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