Albert Isola Announces Upcoming Regulations To Decrease Market Manipulation Among Blockchain Firms
Albert Isola Announces Upcoming Regulations To Decrease Market Manipulation Among Blockchain Firms
April 13, 2020
Albert Isola Announces Upcoming Regulations To Decrease Market Manipulation Among Blockchain Firms
Albert Isola Announces Upcoming Regulations To Decrease Market Manipulation Among Blockchain Firms
April 13, 2020

Albert Isola, the Minister of the Digital and Financial Services of Gibraltar, has announced upcoming regulations to decrease market manipulation among blockchain firms.

On April 10, it has been reported in an interview with The Banker that Isola also discussed his government’s decision to abandon its development of a legislative apparatus for token sales amid the bursting of the initial coin offering, or ICO, bubble.

However, Isola states that Gibraltar’s government will introduce regulations to mitigate market manipulations in the blockchain sector “in the next few months.”

 “Increasing Risk”

Isola describes manipulation as an “increasing risk” among distributed ledger technology (DLT) companies, emphasizing that a tenth “core” regulatory principle will address the issue.

It has been analyzed that Gibraltar claims to have been the first jurisdiction to regulate and license DLT firms when the Gibraltar Financial Services Commission (GFSC) introduced a modified fintech license for blockchain companies on January 1, 2018. 

ALSO READ :  China to Be First to Launch Digital Currency, Says Think Tank Exec

The regulations spanned nine core principles, including directives addressing risk management, cybersecurity, and financial crime.

Likewise, Isola states that the government is currently developing a technology solution to address recommendations by the Financial Action Task Force, or FATF, in its 2019 review of the territory’s financial regulations.

It has also been analyzed that the technology stack will primarily seek to address the FATF’s travel rule and will be designed to automatically collect information as Gibraltar-based firms make financial transfers.

Also, Isola states that 15 blockchain firms are currently regulated in Gibraltar by adding that “they are subject to the same supervisory regimes as banks or financial services firms.”

ICO Regulation Amid The Dramatic Decline

Isola emphasizes the importance of regulators keeping pace with global development within the DLT sector in order “to remain fit for purpose.”

He notes his government’s decision to abandon its development of ICO regulation amid the dramatic decline in the number of initial coin offerings since 2017.

ALSO READ :  South Korea Considers A Free Trade Zone For Industrial Hemp Run On A Blockchain-Based Platform

He added:

“[W]e looked at developing a token regime two years ago, because we were concerned about the boom in token sales. But by the time we came to launching the regime in 2019, it was close to the publication of the Financial Action Task Force recommendations, so we decided to wait. Also, the market seemed to be quietening down, so the risk tapered.”

Thus, Isola states that while Gibraltar considered regulating crypto assets broadly, the government “concluded that it was too challenging to do it safely.”

Source: Cointelegraph | Image: YouTube


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
Share This

Share This

Share this post with your friends!