Gibraltar Authorities Release 10th Regulatory Principle To Tackle Market Manipulation

  • Gibraltar’s top regulatory watchdog unveiled a plan to negate market manipulation and illicit trading practices
  • Fresh regulatory practices have been developed by a team of industry stakeholders and government officials

The government of Gibraltar introduced new laws for blockchain companies geared toward neutralizing illegal financial activities like insider trading and market manipulation. 

Indeed, authorities are intent on ensuring that the local crypto industry continues to thrive while maintaining compliance with international financial standards. Earlier in 2020, the country’s Digital and Financial Services Minister Albert Isola opined that tampering with asset prices posed a serious risk to the growth of the digital economy. 

Minister Isola also added blockchain developments must be supported by a safe marker environment. Commenting on the latest policy framework, the government official said:

The introduction of the 10th Principle, with significant input from industry, will develop further our regulatory framework. It provides permission firms with clear guidance on the standards that are required of them as well as providing consumer and jurisdictional protection.

10th Regulatory Principle

According to the so-called 10th Regulatory Principle published on Tuesday (April 27, 2022), blockchain firms and distributed ledger technology service providers must install appropriate systems designed to combat asset manipulation and insider trading.

The latest guidelines introduced by the Gibraltar Financial Services Commission (GFSC) also stipulate that companies are required to report on transactions involving massive amounts of digital assets. In addition, the policy package insists that DLT service providers are responsible for managing information regarding market conditions and trading volume data.

Notably, the guidelines emphasized combating illegitimate information and ensuring that market integrity is not tampered with. 

Following the announcement of the new laws, financial counsel Joey Garcia praised authorities on their move. Garcia said:

“It is great to see Gibraltar lead in setting standards, particularly when the FATF has cited market integrity and prudential requirements as factors that jurisdictions should consider when developing regulatory requirements for the space.

Gibraltar’s Emerging Crypto Scene

The British overseas jurisdiction has reportedly implemented crypto-friendly policies over the past few years in a bid to pull in foreign investments and support local blockchain-powered businesses. In 2017, authorities announced a crypto licensing scheme for DLT startups.

Furthermore, the territory reportedly approved Huobi to transfer its spot trading facilities to its local affiliate after China’s crackdown on digital assets, per reports from Bloomberg,