A tenth principle covering marketing integrity has been added to Gibraltar’s progressive Financial Services (Distributed Ledged Technology Providers) Regulations, setting the standard for securing market integrity in the virtual asset space. The Regulatory Principle states that “A DLT Provider must conduct itself in a manner which maintains or enhances the integrity of any markets in which it participates”.
Drafted by experts in the industry and the regulatory authorities, the Guidance Note instructs against financial abuse, outlining the responsibilities of a DLT provider and providing pointers on what constitutes good practice by market players. What is sought is ultimately the protection of the rights and interests of the consumers by preventing malpractices such as insider trading while promoting positive market conduct such as increasing transparency.
Stated by Albert Isola, Minister for Digital and Financial Services, “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.”
The Market Integrity principle is another yet testament to Gibraltar cementing its place as a trendsetting and secure jurisdiction in the DLT space, aiming to maximise the prosperity of both businesses and the consumers they serve.