REG - GSTechnologies Ltd - GS Money Stablecoin Regulatory Sandbox Application

GSTechnologiesAnnouncement

13/09/2022 07:00

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RNS Number : 1813Z  GSTechnologies Ltd  13 September 2022

13 September 2022

GSTechnologies Limited

("GST" or the "Company" or the "Group")

Appointment of Pinsent Masons LLP to commence

GS Money Stablecoin Regulatory Sandbox Application

 

GSTechnologies Limited (LSE: GST), the fintech and information technology
solutions company, is pleased to announce that the Company has appointed
Pinsent Masons LLP as its legal advisor to assist with the Company's
stablecoin application for admission to the UK Financial Conduct Authority
("FCA") Regulatory Sandbox.  Founded on the precept that innovation and
technology can benefit consumers and the financial services industry, the FCA
Regulatory Sandbox provides a production environment for firms to test
innovative propositions in the market with real consumers.

To assist with the FCA Regulatory Sandbox application process, the Company has
appointed Pinsent Masons LLP as their legal adviser.  The application is
intended to be submitted by GST's UK incorporated blockchain focussed business
unit, GS Fintech Ltd ("GS Fintech"). The Pinsent Masons team will advise GS
Fintech on its application to the FCA, including helping in refining GS
Fintech's stablecoin business plan. They will also support GS Fintech's
activities in ensuring the proposed technical and operational procedures are
compliant with all electronic money and relevant payments regulations in the
UK.

The FCA Regulatory Sandbox application is a key pillar of the stablecoin
activities that the Group intends to carry out in strategic jurisdictions,
including the UK, as outlined in the Company's announcement on 30 June 2022.
The Company has undertaken significant research to analyse the impact of
global stablecoins and the regulatory requirements in each leading
jurisdiction. Taking appropriate advice, the Company has identified the UK
Government's openness to the industry, the UK regulatory authorities'
commitment to cooperating with industry partners, and the UK's forward-looking
regulatory approach to attracting stablecoin service providers as significant
reasons informing the Company's decision to operate and grow in the UK.

Utilising the FCA Regulatory Sandbox is designed is to encourage more
participants to experiment with the Company's fiat-linked (full-reserve
backed) stablecoins and conduct stress tests in the stablecoin-based payment
system, in a similar manner to how it performs in the banking world.
Ultimately, the Company's goal is to be the first publicly quoted company to
obtain an electronic money institution licence from the FCA to issue
stablecoins and provide trusted stablecoin-based payments services to the UK
market and beyond.

Further announcements will be made in due course, as appropriate.

Tone Goh, Chairman of GST, commented: "Since the launch of GS Money
stablecoins in late November of 2021, our testing has been largely restricted
to companies under GST's direct control, applying to the Regulatory Sandbox
changes that.

"We believe the UK market is in need of a trusted UK-based provider to offer
regulated electronic money and payment activities specifically related to
stablecoins. I believe GST has the technology and operational readiness to be
a leader in this business."

Enquiries:

 The Company
 Tone Goh, Executive Chairman                            +65 6444 2988
 Financial Adviser
 VSA Capital Limited                                     +44 (0)20 3005 5000
 Simon Barton / Pascal Wiese
 Broker
 ETX Capital                                             +44 (0)20 7392 1400
 Tom Curran / Thomas Smith
 Financial PR & Investor Relations
 IFC Advisory Limited                                    +44 20 (0) 3934 6630

 Tim Metcalfe / Graham Herring / Florence Chandler       gst@investor-focus.co.uk

For more information please see: https://gstechnologies.co.uk/
(https://gstechnologies.co.uk/)

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

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