Gibraltar Announces the Launch of New Virtual Asset Legislation

The Government of Gibraltar has published new regulations setting the standard for market integrity in the virtual asset space.   

The amending regulations add a 10th Regulatory Principle to Gibraltar's Financial Services (Distributed Ledger Technology Providers) Regulations, requiring that all DLT Providers operating in Gibraltar conduct themselves in a manner which maintains or enhances the integrity of the markets in which they participate.

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Simultaneously, and maintaining consistency with the approach to the other 9 Regulatory Principles, the Gibraltar Financial Services Commission (GFSC) has published a Guidance Note which sets out its expectations of DLT Providers in this context.

The content provides clear guidelines informed by industry and regulatory experts on the prevention of market manipulation and insider trading together with the creation of disclosure and trading standards.

Minister for Digital and Financial Services, the Hon Albert Isola MP, said:"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."

Kerry Blight, CEO of the Gibraltar Financial Services Commission commented:"Since the introduction of the DLT regulatory framework in 2018, we have worked with government, specialist advisors and industry to refine our guidance and ensure it is suited to this rapidly developing sector, providing both regulatory certainty to DLT Providers and robust protection to their growing consumer base."