Gibraltar became a hub for crypto — now it wants to tackle attempts to manipulate the market

cnbc.com:

Gibraltar has unveiled new regulations for the cryptocurrency industry, taking aim at potential market manipulation and insider trading in the fast-evolving space.

The overseas British territory, located on the southern tip of Spain, published an amendment to existing regulations Wednesday requiring firms dealing in bitcoin and other digital currencies to respect the integrity of markets in which they operate.

In a guidance note for regulated crypto companies, the Gibraltar Financial Services Commission says firms must combat «manipulation or improper influencing of prices, liquidity or market information, or any other behaviour which is inimical to market integrity.»

«We were the first jurisdiction in 2018 to launch the legal and regulatory framework, and we're now the first jurisdiction to launch a framework for market integrity,» Albert Isola, Gibraltar's minister for digital and financial services, told CNBC.

«The more there is around the world in terms of international standards for this space, the more trust, the more usage, and the more adoption we will have around the world,» he added.

While perhaps better known as a seaport and popular vacation spot, Gibraltar is a hub for a number of other industries, including financial services and gambling. Its latest move forms part of an ongoing bid to lead the way in regulation of the digital currency industry.

Despite its small size, Gibraltar has a track record of developing rules for the crypto market. The region, which borders Spain but is under British control, first introduced a licensing regime for blockchain firms back in 2018.

Some fairly large names have set up shop in Gibraltar and obtained licenses from local regulators, including FTX, Huobi and Bullish, which