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Gibraltar has enacted laws to combat cryptocurrency market manipulation

Gibraltar has announced new restrictions aimed at preventing insider trading and market manipulation in the cryptocurrency sector.

Earlier today, the British overseas territory announced a modification to existing rules as well as a guideline note for crypto firms operating under its authority.

Gibraltar compels crypto businesses to respect the marketplaces in which they operate, according to the advice paper.

The Gibraltar Financial Services Commission (GFSC) specifically requires crypto businesses to combat price manipulation, liquidity manipulation, market information manipulation, and any other behavior that jeopardizes market integrity.

Albert Isola, Gibraltar’s Minister for Digital and Financial Services, told CNBC:

“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.”
“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 went on to say that Gibraltar’s well-known history of enacting crypto-friendly legislation is not a marketing ploy. He claims that the jurisdiction only tries to attract a small number of high-quality businesses.

Market manipulation is still a problem in the crypto world

This discovery comes as market manipulation in the crypto sector continues to be a tough nut to crack. Experts believe that crypto whales, in addition to crypto exchanges, have a significant influence in influencing the market’s trajectory.

Bitcoin (BTC) is an example of a coin prone to market manipulation, according to GraniteShares’ Director of Research Ryan Giannotto. According to him, only 0.02 percent of BTC holders control more than 40% of the market’s BTC.

Giannotto’s statements are backed up by data from The top 10,000 wealthiest Bitcoin addresses currently own 59.16 percent of the cryptocurrency’s supply. To put this in context, according to recent data, the Bitcoin network now contains over 81 million wallets.

Market manipulation is also visible in the non-fungible token (NFT) area, in addition to crypto. Wash trading is said to account approximately 95 percent of LooksRare trade activity.

Most authorities, unlike Gibraltar, are having difficulty regulating the crypto area. For example, the United States has yet to decide which regulators will oversee the cryptocurrency industry, let alone establish a regulatory framework.

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Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.