Gibraltar’s government minister of digital and financial services, Albert Isola, said in 2020 that market manipulation was an “increasing risk” among DLT companies. Today, the first step has been taken to prevent this situation.
The Gibraltar Financial Services Commission (GFSC) has taken a step to curb manipulation in the cryptocurrency market by issuing new legislation aimed at the distributed ledger technology sector.
Gibraltar Issues Crypto Legislation
Gibraltar has released new crypto legislation for distributed ledger technology (DLT) service providers.
According to a press release today, the government of Gibraltar has stated that a distributed ledger technology (DLT) provider must protect the integrity of any market it participates in.
The Gibraltar Financial Services Commission stated that in its legislation for regulated crypto companies, firms must combat “manipulation or improper influence of prices, liquidity or market information, or other behavior that harms market integrity.”
It was stated that this legislation was published in order to reduce the effects of any manipulation of prices, liquidity or market information in the crypto money market and to prevent employees from doing insider trading.
The new legislation was prepared with the help of an expert working group of government representatives and leaders in the blockchain and digital asset space.
In 2017, Gibraltar released a regulatory package for distributed ledger technology that allows crypto companies to obtain licenses if they comply with existing principles.
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