Gibraltar Introduces Legislation Governing Virtual Assets

The Government of Gibraltar published a new set of guidelines to regulate the cryptocurrency sphere in the country on Wednesday. According to the official publication, the GFSC and a specialist Working Group on Market Integrity drafted the new regulations and guidance notes.

The group included both government representatives and leaders in the blockchain and digital asset space, who were convened specifically to consider and craft legislation and guidance.

Gibraltar’s Financial Services Regulations now include a 10th Regulatory Principle, which requires that all DLT (Distributed Ledger Technology) providers operating in Gibraltar conduct themselves to maintain or enhance the integrity of the markets in which they operate.

In addition, Gibraltar Financial Services Commission (GFSC) has published a Guidance Note that sets out its expectations concerning DLT Providers in this context, maintaining consistency with the approach taken to the other 9 Regulatory Principles.

MP's Reaction

“Gibraltar continues to lead the way in defining standards in the virtual asset sector. As is the case with traditional markets, I have long believed that defining standards of market integrity would be required for the continued development and adoption of this industry. 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. I am most grateful to our panel of experts who have played such an integral role in shaping this new legislation working together with the GFSC and to sector representatives for their invaluable contribution to the industry consultation process,” Albert Isola, the Minister for Digital and Financial Services, commented.

The book contains clear guidelines regarding the prevention of market manipulation and insider trading, as well as the development of disclosure and trading standards. It is based on the expertise of industry and regulatory experts.

Last year, Bullish, a cryptocurrency exchange owned by Block.one, announced that it had received a Distributed Ledger Technology license from the Gibraltar Financial Services Commission.