Gibraltar Introduces New Legislation to Combat Insider Trading and Market Manipulation

The Gibraltar Financial Services Commission (GFSC) has updated its regulatory guidelines for the digital currency ecosystem to include a 10th clause that addresses insider trading and market manipulation amongst crypto virtual asset service providers operating in the country.

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Despite the requirements to adhere to the provisions of the 10th clause to help shore up the market integrity in Gibraltar, concerned startups will also be obligated to comply strictly with the requirements of the other nine regulatory guidelines first floated in 2018. The GFSC said that the introduction of the 10th regulatory clause is representative of all the stakeholders in the space, cutting across government representatives to crypto industry leaders.

“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.”

As the country figured out its regulatory approach to the highly despised industry earl, Gibraltar’s doors are always wide open to cryptocurrency startups. While it first introduced its crypto regulations in 2018, the GFSC made a number of comprehensive updates to the guidelines back in September 2020, as reported by Blockchain.News at the time.

The forward approach of Gibraltar towards digital currencies has moved a number of companies including Huobi Global exchange to change its operating headquarters from Seychelles to the country back in November last year.

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