Honesty and integrity is somewhat vague with the mechanism being presented knowing that there are history of Gibraltar's reputation about taxation.
My take is that it's risky to rely on Gibraltar as a haven from outside regulatory action, or pressure from regulators. Whatever the underlying cause, Visa recently shut down WaveCrest's access to the Visa network. They were issuing cards for Xapo, Bitpay, and others. WaveCrest is licensed in Gibraltar.
It's a toss-up. Nobody knows how any of this will play out. One example that comes to mind is Antigua and Barbuda's support of online gaming, including offering services to US residents in the face of the UIGEA passed in 2006. In the end, the WTO sided with Antigua and Barbuda against the US, and Antigua continues to lobby for hundreds of millions of dollars from the US for unlawful enforcement of the UIGEA against free trade agreements.
So I am very curious to see how this plays out:
The regulation will apply to natural and legal persons that use the DLT for business activities engaged in the transmission or storage of value belonging to others and which are not subject to other existing legal regulations. Such business activities include, for example, centralised virtual currency (VC) administrators, VC wallet providers, trading platforms, VC exchanges, payment service providers, issuers of asset-backed tokens, pre-loaded VC, vouchers and wallets, and peer-to-peer gaming platform operators.