Per multiple local media outlets, Gibraltar’s financial regulator (GFSC) and the special working committee submitted a draft on the regulation of cryptos to the nation’s authorities a couple of weeks ago. Today, the Gibraltar government has turned the draft into a policy and issued an official statement regarding this new policy.
Members of the committee were chosen from top blockchain and crypto players and some government officials. The new regulation has been tagged the 10th regulatory principle. It makes it mandatory for DLT service providers to ensure that their offers are market-specific and there are no ambiguities about their offering. The GFSC also released its remarks that contain its expectations from these DLT providers and are in line with previous regulatory policies.
Crypto Operators Need A Proper Framework Of Operation – Albert Isola
Gibraltar’s head of digital and financial services, Albert Isola, made his remarks concerning releasing these new regulatory guidelines. He said that Gibraltar is one of the few countries establishing proper standards for the digital asset space. He added that having a standard of market integrity is necessary for any market (whether traditional or digital asset) to enhance its development.
Hence, the digital asset market must also have a standard of market integrity. Once such integrity is established, investors (private or institutional) become more interested in investing in this space. Isola also said, “regulators such as the GFSC want to ensure a level playing field for crypto market players and the traditional finance market players.”
Thus, the standard of operation in both markets must be high enough. In his concluding remarks, Isola commended the efforts of the working committee who drafted the regulatory proposal, saying they have contributed in no small measure to the growth and development of Gibraltar’s digital asset space.
Also, a popular financial lawyer, Joey Garcia, commended the efforts of the committee and the authorities. According to her, “Gibraltar is leading the way in developing a standard regulatory policy for its financial markets, including the crypto market. More importantly, to make it happen, we aren’t contravening international laws, especially FATF policies.”
Highlights Of The New Policy
Some of the policies contained in the guidelines include how to prevent market manipulation or insider trading and the development of standard trading procedures. Several industry analysts have lauded the new guidelines stating it is a good development and the next best step to take Gibraltar’s crypto space to the next level.
While there are a few DLT service providers in Gibraltar, the GFSC is still approving more. A few months ago, the GFSC granted DLT operational license to Block.One crypto exchange. Also, a Bloomberg report claimed that Gibraltar offered the embattled crypto exchange,
Huobi, a haven in the country following China’s complete ban on all crypto activities where Huobi had its headquarters. The UK colony has been adopting various crypto-friendly policies in recent years as it seeks to make the country a crypto and blockchain hub to entice international investors.