Kimberley Mannion
GIBRALTAR has announced new regulations on cryptocurrency to prevent market manipulation.
A new amendment introduced requires companies dealing in digital currencies to respect market integrity and prevent insider trading.
The Gibraltar Financial Services Commission says crypto companies must stop the ‘manipulation or improper influencing of prices, liquidity or market information, or any other behaviour which is inimical to market integrity’.
Gibraltar has aimed to be a leader in cryptocurrencies, being the first jurisdiction to launch a legal and regulatory framework in 2018.
The financial sector makes up around a third of Gibraltar’s economy. The embrace of bitcoin and sibling currencies is a risk, but with good regulation could make it a global cryptocurrency.
Proper regulations surrounding cryptocurrencies also make up part of Gibraltar’s efforts to rid itself of its reputation as a tax haven. The Rock was removed from the Spanish government’s list of tax havens last year.
Gibraltar’s Minister for Digital and Financial Services, Albert Isola MP, stated: “Like any other market, the virtual asset market must operate in a manner that is fair, orderly and efficient, whilst enhancing the levels of trust that firms in the regulated sector currently enjoy.
We must ensure that we provide operators with a framework that enables them to maintain the same high standards as operators do in traditional industries.”
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