Gibraltar rolls out new virtual asset regulation to combat market abuse

Gibraltar rolls out new virtual asset regulation to combat market abuse

A new regulatory package was introduced by Gibraltar, a British overseas territory. This document outlines the responsibilities of cryptocurrency businesses regarding threats of market manipulations and insider trading.

The Gibraltar government published the 10th regulatory principle of its financial services regulation on April 27. These details are provided in a Guidance note by Gibraltar Financial Services Commission, the territory’s chief finance regulator.

A special working group of government officials and industry professionals created the regulation. It provides guidelines for market abuse prevention. DLT providers will monitor the movement and publication of large virtual asset holdings. They also need to examine whether algorithmic-based systems have been used to create misleading data about transaction volumes.

The regulation requires that crypto companies seek to prevent insider trading and inform the public about any relevant information as soon as possible. It also proposes measures to limit the ability of liquidity providers and market makers to substantially alter asset prices.

Albert Isola (Gibratar’s Minister of Digital and Financial Services) expressed confidence that the measures would help maintain Gibraltar’s strong relationship with crypto. Cointelegraph was informed by Isola:

“The 10th Principle will further enhance our regulatory framework with significant industry input. It gives permissioned firms clear guidance about the standards they must meet and provides protection for consumers and their jurisdiction.

Joey Garcia, a fintech lawyer, was one of the leaders in the group. He praised Gibraltar for its efforts to adhere to FATF recommendations.

“It’s great to see […] Gibraltar leading in the setting of standards, especially when the FATF has mentioned market integrity and prudential needs as factors jurisdictions should consider when developing regulations for the space.”

Gibraltar, a country with a population of approximately 34,000 people has emerged as a desirable location for crypto in recent times. According to reports, Huobi, a crypto exchange, had moved its spot trading operations from its Gibraltar-based affiliate after receiving approval from the GFSC.

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