Gibraltar Updates its DLT Regulatory Framework to Address Market Abuse

Gibraltar, one of the most forward-thinking countries for crypto regulations has updated its Distributed Ledger Technology (DLT) regulatory framework as it seeks to combat the growing market abuse in the country. According to the government’s announcement, the new regulation is centered on setting the standard for market integrity in the virtual asset space.

The new regulation comes off as a 10th addition to the set of 9 previous guidelines published as part of a Guidance Note that was published in 2018. As detailed, this new guideline will help to address the growing issue of market manipulation and insider trading and was established in conjunction with government representatives as well as leaders in the digital assets ecosystem.

“Since the introduction of the DLT regulatory framework in 2018, we have worked with government, specialist advisors, and industry to refine our guidance and ensure it is suited to this rapidly developing sector, providing both regulatory certainty to DLT Providers and robust protection to their growing consumer base,” said Kerry Blight, CEO of the Gibraltar Financial Services Commission. 

“The Market Integrity Principle and Guidance Note further strengthen the framework. They introduce a number of key responsibilities, designed to enable firms to root out insider trading and other forms of market abuse, improve standards around disclosure and transparency, and ultimately safeguard the rights and interests of consumers.”

The new rule is billed to position Gibraltar on the right path as more VASPs are moving into the country per the increasing demand for crypto products.

Bolstering Regulation to Support Growth

The move by Gibraltar with respect to its new regulatory stance is hinged on pushing forth the growth of the broader crypto industry, as it sets a very good precedent that other notable watchdogs around the world.

The growth example that is being championed by Gibraltar is one that promotes equity and fairness in the nascent ecosystem, a stance that has backed the migration of top exchanges to the nation.

“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,” said Minister for Digital and Financial Services, the Hon Albert Isola MP.