Gibraltar, a small British overseas territory, has released a new guideline for cryptocurrency businesses operating in the region, which aims to foster market Integrity and combat market manipulation.
- The Gibraltar Financial Services Commission (GFSC) published the regulatory principle on Wednesday (April 27, 2022). The new rule was drafted by a special working group comprising government officials and experts in the crypto and blockchain industry.
- Governments and regulators have expressed concern about the market manipulation supposedly plaguing the crypto industry. It is one of the reasons the US Securities and Exchange Commission (SEC) gave for rejecting several spot Bitcoin exchange-traded fund (ETF) applications.
- Meanwhile, the GFSC guidance is looking to tackle such issues. According to the regulatory principle, cryptocurrency firms operating in Gibraltar must put measures in place to prevent manipulation of prices, liquidity or market information. Businesses are required to also prevent insider trading activities by their employees.
- Speaking to CNBC, Gibraltar’s minister for digital and financial services, Albert Isola, said:
“We were the first jurisdiction in 2018 to launch the legal and regulatory framework, and we’re now the first jurisdiction to launch a framework for market integrity. The more there is around the world in terms of international standards for this space, the more trust, the more usage, and the more adoption we will have around the world.”
- Gibraltar has also served as an attractive spot for cryptocurrency exchanges. As previously reported by CryptoPotato back in November 2021, exchange giant Huobi announced that it would move its spot trading operations to the region.