Gibraltar, up on the rock

Gibraltar issues 10th Regulatory Principle for digital ledger tech

Gibraltar is pushing to provide even more clarity for digital currency companies operating in its jurisdiction. Gibraltar Financial Services Commission (GFSC), the market regulator of the British overseas territory, has issued its “10th Regulatory Principle for Digital Ledger Technology (DLT).”

According to a CNBC report, the GFSC’s guidance note for the regulation directs digital currency service providers in the territory to compulsorily combat market or price manipulation, liquidity or market information manipulation, and any other activity that will affect the integrity of Gibraltar’s digital assets market.

The entire regulation was put together by the regulator and a special working group named the Market Integrity Working Group, consisting of government officials and leaders in Gibraltar’s blockchain and digital currency space.

Speaking to local news outlet GBC Online, Gibraltar’s Minister for Digital and Financial Services Albert Isola noted that the legislation has been long in the works and is intended to make the country even more friendly to the DLT industry. 

Isola highlighted that the Rock, as the territory is commonly called, was one of the first jurisdictions to open its arms to the DLT industry. This 10th regulatory principle will join nine other principles it has in place for the DLT industry to mirror Gibraltar’s traditional principles of financial services.

“The introduction of the 10th Principle, with significant input from industry, will develop further our regulatory framework. It provides permissioned firms with clear guidance on the standards that are required of them as well as providing consumer and jurisdictional protection,” he said.

Gibraltar has a long history of making efforts to provide clarity for the digital currency industry. The nine regulatory principles the territory uses were first established in 2018. Back in 2020, Gibraltar updated seven of the principles to reflect the changes in the industry.

The territory, which borders Spain and has a population of around 34,000 people, also plans to adopt blockchain technology in its governance. Meanwhile, several big digital currency firms, including FTX, Huobi, and Bullish, have set up shop in Gibraltar.

Regulatory clarity for the digital assets industry is advancing globally

Outside of Gibraltar, many more governments have been paying attention to the digital currency industry. Countries including the United Kingdom, the United States, Brazil, Mexico, and Cuba are all working towards bringing the industry into their regulatory fold.

The U.K. says it plans to become a global hub for digital assets while the U.S. is conducting a comprehensive study of the industry.

Meanwhile, countries like El Salvador and the Central African Republic have gone further to adopt Bitcoin as legal tender.

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