August 17, 2022

Gibraltar Has Become A Crypto Hub And Now Intends To Control The Market

Gibraltar, the country located on the southern tip of Iberian Peninsula, has revealed its new regulations for the cryptocurrency industry, taking aim at potential market manipulation and insider trading in the quickly evolving crypto space.

The overseas British territory, published an amendment to the regulations which have already been in existence on Wednesday, requiring firms who trade Bitcoin and many other digital currencies to respect the integrity of the markets in which they carry out their trading operations.

The Gibraltar Financial Services Commission said in a guidance not for regulated cryptocurrencies companies that manipulation or improper influencing of prices, liquidity or market information, or any other behavior which is inimical to market integrity.

Albert Isola, Gibraltar’s minister for digital and financial services, said in an interview that “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. 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.”

The Big Blockchain Ambitions Of Gibraltar

Of course we know that Gibraltar is a renowned spot for vacations and gambling. What many people are still trying to come to terms with is the fact that Gibraltar is also a powerhouse when it comes to financial services and is currently making serious moves to lead the way in the 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 big names have set up outlets in the zone and obtained licenses from local regulators. Some of these big names include FTX.

Executives from Binance, the world’s largest cryptocurrency platform, also visited the city of Gibraltar some months back. Binance doesn’t have a license to operate in the territory yet but is looking to become friends with the regulators, after facing heavy crackdowns in a lot of countries the previous year.

The Gibraltar Stock Exchange recently agreed to be acquired by Valereum, a blockchain firm, in a bid to become the world’s first regulated bourse for share and crypto trading.

The latest rules arrive as various major world economies, including the U.S. and U.K., are now introducing new rules to bring crypto into the regulatory fold.

It is however interesting to see that more jurisdictions are recognizing the need for more regulations in the cryptocurrency industry.

The Issue Of Transparency

Gibraltar has previously been criticized for being a “tax haven.” Several major U.K. gambling firms, including Entain and 888, set up shop in the rocky peninsula, in part due to its favorable taxation regime. More recently, however, Gibraltar has sought to distance itself from such a reputation.

The region is “fully compliant with all transparency and exchange of information standards applicable in the U.K.,” Isola said, adding this was at odds with descriptions of Gibraltar as a tax haven. Such transparency standards also apply to crypto, Isola added, meaning “the bar to entry is high.”

Spain last year agreed to take Gibraltar off its list of tax havens after coming to a tax cooperation deal with the U.K. 

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