The British overseas territory of Gibraltar has set new rules in the cryptocurrency space that prevent manipulations in the distributed ledger technology space.
The new legislation by the Gibraltar Financial Services Commission wants all the distributed ledger technology providers to uphold integrity.
The legislation was formed by a specialist market integrity group that brought together government representatives in the blockchain and digital asset sector.
The note accompanying the announcements adds that market integrity is essential to stem manipulative trading, underscoring the importance of disclosures.
The law requires that the DLT providers implement measures to curb the effect of all forms of price manipulation, liquidity, and market information and reduce aspects of insider trading.
Gibraltar’s Minister for digital and financial services, Albert Isola, noted in 2020 that market manipulation is an increased risk among DLT firms.
Gibraltar also released multiple regulations in 2017 covering the aspects of DLT that licensed cryptocurrency firms for complying with the available principles.