Published: 27.04.2022
Article reading time:
2 minutes.
The Gibraltar financial regulator is introducing new rules for the crypto industry aimed at combating insider trading and market manipulation.
The UK Gibraltar Financial Services Commission (GFSC) is introducing new rules for companies that provide distributed ledger technology (DLT) services as part of the fight against market manipulation. The new regulation, developed by an ad hoc working group made up of government officials and industry experts, sets out operational guidelines to prevent market abuse.
According to the document, companies will have to monitor the movement of virtual assets and the facts of the publication of false information that could harm financial markets. In addition, organizations will need to check whether algorithms are used that can simulate data on the volume of transactions in the market.
Also, cryptocurrency companies will be required to look for and prevent any trading in insider information and report it to the public as soon as possible. In addition, it will be necessary to reduce the ability of liquidity providers and market makers to influence the price of assets.
According to Gibraltar Minister for Digital and Financial Services, Albert Isola, the new measures will help the region maintain a strong relationship with the crypto industry. The rules are set out very clearly and provide market participants with an almost exhaustive guide to action. If industry representatives contribute to compliance with the rules, then the crypto industry will not linger in place and will continue to develop, Isola believes.
At the end of last year, the Gibraltar government announced that it plans to implement the RSK blockchain into the eGov government platform in order to improve the quality of services provided to citizens.
Source: Bits
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