The British Overseas Territory wants to become a global hub for crypto businesses.
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Gibraltar has unveiled new regulations for the cryptocurrency industry, targeting potential market manipulation and insider trading in a rapidly changing space.
The British Overseas Territory, located at the southern tip of Spain, on Wednesday published an amendment to existing regulations requiring companies that trade in bitcoin and other digital currencies to respect the integrity of the markets in which they operate. .
In a guidance note for regulated crypto firms, the Gibraltar Financial Services Commission says firms must address “the improper manipulation or influence of price, liquidity or market information, or any other behavior contrary to market integrity”.
“We were the first jurisdiction in 2018 to launch the legal and regulatory framework, and we are now the first jurisdiction to launch a framework for market integrity,” Albert Isola, minister of digital and financial services, told CNBC. Gibraltar.
“The more international standards there are for this space around the world, the more trust, use and adoption will be around the world,” he added.
Gibraltar’s Big Blockchain Ambitions
Although perhaps best known as a popular seaport and vacation spot, Gibraltar is a hub for a number of other industries, including financial services and gambling. His latest move is part of an ongoing attempt to pave the way for regulation of the digital currency industry.
Despite its small size, Gibraltar has a proven track record in crafting rules for the crypto market. The region, which borders Spain but is under British control, first introduced a licensing regime for blockchain companies in 2018.
Some pretty big names have settled in Gibraltar and obtained licenses from local regulators, including FTX, Huobi and Bullish, which is backed by PayPal co-founder Peter Thiel.
Executives from Binance, the world’s largest crypto exchange, also visited Gibraltar “a few months ago” but are unlicensed, Isola said. The company is seeking to become a friend rather than a foe of regulators after facing crackdowns in many countries last year.
The Gibraltar Stock Exchange recently agreed to be acquired by Valereum, a blockchain company, with the goal of becoming the world’s first regulated exchange for trading stocks and crypto. This is a goal that the SIX Swiss Exchange is also seeking to achieve with the creation of an exchange for trading securities based on the blockchain.
The latest rules come as various major global economies, including the US and UK, are now introducing new rules to bring crypto into the regulatory fold.
“I think it’s a sign that more jurisdictions are recognizing the need to do this,” Isola said. “And the need to do that is because there’s more and more adoption.”
However, Isola insisted that Gibraltar “is not doing this to market itself”, adding: “We want a very small but quality number of businesses in our jurisdiction”.
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Gibraltar unveils new cryptocurrency rules against market manipulation – Reuters News in France and abroad
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