Gibraltar’s government wants to prevent cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. manipulation with new rules, as “it has been a risk among tech companies.”
This week seems to be the week of crypto legals and regulations. Earlier we told that in Cuba published in Official Gazette regulation legalizing the issuance of licenses to crypto providers while Brazil’s Senate last night approved the bill regulating cryptocurrencies.
This news has a very different tenor, as well as being from a different continent: Europe.
Gibraltar, a British Overseas Territory and promontory located on the southern coast of Spain, has just reported that new measures, if necessary crackdowns, to prevent crypto market manipulation and insider trading in this space.
Specifically, the Gibraltar Financial Services Commission (GFSC) published today an amendment to existing regulations that require companies that trade with the company to Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and other digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies respect the integrity of the markets in which they operate.
In a guidance note for regulated regulation is when something is controlled by a specific set of rules. cryptocurrencies, the Gibraltar Financial Services Commission says that companies will must combat the “manipulation or undue influence of market an area or arena, online or offline, in which commercial dealings are conducted. prices, liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. or information, or any other behaviour that is detrimental to the integrity of the market”.
“We were the first jurisdiction in 2018 to launch the legal and regulatory framework, and now we are the first jurisdiction to launch a market integrity framework.” Albert Isola, Gibraltar’s minister for financial and digital services, told CNBC.
“The more there is around the world in terms of international standards for this space, the more trust, the more usage and the more adoption we’ll have around the world. ”, agregó
Integrity first and foremost
According to a press release, this new regulatory principle from the financial regulator states that a provider of Distributed Ledger a record of financial transactions that cannot be changed, only appended with new transactions. Technology (DLT) must maintain the integrity of any market in which it participates. .
The principle, which cryptocurrencies should follow, addresses a long-standing concern. Market manipulation has been a “increasing risk” among DLT companies, Isola said in 2020.
Market integrity is essential for a fair, orderly and efficient market, and is a factor in monitoring manipulative trading and other forms of market abuse, high disclosure standards and strong consumer protection, the government’s press release says.
The legislation also states that a DLT provider shall implement measures to prevent or mitigate the effects of any type of price manipulation The policy also provides guidance on the use of insider trading, liquidity or market information and preventing employees from engaging in insider trading, in accordance with guidance issued in conjunction with the policy.
Explains Coindesk q he new legislation was drafted with the help of a dedicated market integrity working group comprised of government representatives and leaders in the market integrity space. Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. and digital assets.
More Gibraltar regulations
The focus on market integrity is another principle that the country’s financial regulator is emphasizing, in addition to nine others that firms must already follow. These principles emphasize integrity, business management, governance, financial crime, contingency arrangements and more.
In 2017, Gibraltar launched a regulatory package for distributed log technology that allowed cryptocurrencies to obtain a license if they complied with existing principles.
Some pretty big names have set up shop in Gibraltar and have obtained licences from the local regulators, including FTX, Huobi y Bullish.
It has also become a hub for companies Blockchain. In fact, in December 2021 the Government of Gibraltar itself announced a project to integrate Blockchain in their utility management systems, and said that the pilot will was being carried out with the support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. of the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Bitso and the developer of Blockchain RSK IOBVlabs , both Latin American.
Also in 2016 added to Bitcoin within its stock market.
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