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27th April 2022, 19:10

10th regulatory principle to Gibraltar's Financial Services Regulations for DLT published

Gibraltar has added a 10th regulatory principle to its financial services regulations on distributed ledger technology, relating to market integrity and protection against price manipulation.

The government describes the Rock's purpose-built regulatory framework for DLT as the world's first.

The Financial Action Task Force has recently cited market integrity as an important consideration in the development of regulatory requirements; working group co-leader, Joey Garcia, said it was great to see Gibraltar setting standards in this space.

The amendment to the financial services regulations on distributed ledger technology providers requires that all DLTproviders operating in Gibraltar conduct themselves in a way that maintains or enhances the integrity of the markets in which they participate.

The regulations and guidance were drafted by the Financial Services Commission and a specialist Market Integrity Working Group, comprising Government representatives and leaders in the blockchain and digital asset space.

In its guidance note, the Financial Services Commission says market integrity encompasses key responsibilities, including monitoring for manipulative trading and other forms of market abuse; fostering non-discriminatory market access; transparency in price formation; fair trading practices; high disclosure standards and robust consumer protection. The FSCsays when determining how best to comply, a provider should consider its role in a particular market, and in the marketplace overall.

CEO of the FSC, Kerry Blight, says the market integrity principle and guidance note further strengthen Gibraltar's framework for DLT regulation, providing certainty for providers and robust protection to their growing consumer base. The Ministry for Digital and Financial Services says Gibraltar's is the world's first purpose-built regulatory framework for DLT businesses, with the Rock cementing itself as a leading jurisdiction for DLT firms wishing to operate in a regulated environment.

Following the publication of a 10th regulatory principle to Gibraltar's Financial Services Regulations for DLT (Distributed Ledger Technology) providers, Albert Isola says this will contribute to a robust framework within which to operate.

The Minister for Digital and Financial Service reiterated that Gibraltar is the first jurisdiction in the world to provide this sort of regulation for licensed firms.

He says the more trust we can create in the sector, the better. Our reporter, Iain Triay Clarence, spoke to Mr Isola.