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Gibraltar introduces rules preventing crypto market manipulation

In a press release published last April 27, the Gibraltar Financial Services Commission (GFSC) has amended existing crypto regulations to ensure market integrity and prevent distributed ledger technology (DLT) providers from manipulating the market. According to the press release, the new rules aim to combat ‘manipulation or improper influencing of prices, liquidity or market information, or any other behaviour which is inimical to market integrity’.

In the guidelines published on the regulatory board’s site, the GFSC said ‘A DLT Provider must conduct itself in a manner which maintains or enhances the integrity of any markets in which it participates.’

It then stated that market integrity included being vigilant of any type of manipulative trading and market abuse and fostering an environment with ‘non-discriminatory market access, transparency in price formation, fair trading practices, high disclosure standards and robust consumer protection.’

The guidelines also explained the responsibilities of a DLT provider and laid down the board’s market integrity requirements and considerations regarding manipulation, insider trading and high trading standards.

Albert Isola, the minister for Gibraltar’s digital and financial services has attested that this development is the state’s next step after laying down regulations. ‘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’, he shares in an interview with CNBC published last April 27, 2022. 

Isola adds that the clearer the international standards are for the crypto space in the world, the more trust, usage and adoption can be expected from this sector. He also discussed how essential it is that other jurisdictions do the same in the CNBC interview. 

Although Gibraltar is known to be a small British territory that borders Spain, it has taken many steps to ensure that the crypto market and Gibraltarians who invest in it thrives. The region was one of the first to welcome blockchain firms back in 2018 and ensure that licensing regimes were provided.

Well-known companies in the crypto industry driven out by strict regulations and bans have also been welcomed by the Gibraltar government. These include exchanges such as Huobi Global, Bullish and FTX, all of which are currently thriving in the region’s crypto market. 

The region of Gibraltar is also known to be a supposed ‘tax haven’, according to reports made by City AM. Its government officials are taking steps to make the territory as attractive as possible to potential crypto partnerships, therefore securing its reputation as a crypto hub. 

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