Gibraltar Financial Services Commission (GFSC), Blockchain introducing new rules for the industry bitcoin and cryptocurrency It aims to prevent market manipulation.
The financial regulator of Gibraltar, one of the British overseas territories, said in a statement today that a blockchain provider must protect the integrity of the market it is in.
This principle, which crypto companies should follow, has in fact been a cause for concern for a long time. Albert Isola, Minister of Digital and Financial Services in the government of Gibraltar, mentioned in his statement that the issue of market manipulation is a growing risk among crypto companies.
Government officials explained that market integrity is essential for a fair, smooth and efficient market, and in addition, monitoring of manipulative transactions and other market abuse issues is also related to market integrity.
“Cryptocurrency Exchanges Will Take Measures To Prevent Price Manipulation”
According to the directive published under the new rules, Blockchain providers will have to take measures to prevent or mitigate price, liquidity and market information manipulations in the market. In addition, employees of cryptocurrency exchanges will be prevented from doing insider transactions.
It was learned that the new law was drafted by government representatives and an expert market integrity group made up of names from the blockchain and cryptocurrency market world.
The country’s financial regulator also stated that focusing on market integrity was one of the principles they emphasized.
Gibraltar released a regulatory package for blockchain technology in 2017, allowing crypto companies to obtain licenses if they comply with the principles found in the country.
*Not investment advice.