Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how a cryptocurrency exchange known as Bullish is teaming up with the Gibraltar government and looking to create a crypto regulatory framework.
Gibraltar Look to Create Crypto Regulatory Framework
One of the fastest growing regulated virtual asset exchanges have announced they will be partnering with the Gibraltar Government and the Gibraltar Financial Services Commission (GFSC) in an aim to create the world’s first regulation for the clearing and settlement of derivative contracts settled in virtual assets. This move will see them look to improve and enhance the integrity of the virtual asset market while they will also look to ensure that virtual asset derivative contracts will be cleared and settled in virtual assets by a recognised clearing house for the first time.
Among the main aims will be to reduce trading risks while the ground-breaking initiative moves beyond the limitations of traditional fiat-based clearing and settlement infrastructure. Bullish is a subsidiary of CoinDesk and the development process is expected to take six months while adapting traditional financial clearing rules to the cryptocurrency market.
Under the proposed clearing framework, select virtual assets may be eligible as collateral and settlement currency. There will be a selection criteria which will follow the principles underpinning existing traditional clearing regulations. The framework will help to expand the range of institutions authorised to hold collateral.
Randi Abernethy, Bullish’s Head of Clearing, said the framework is designed to support institutional adoption through regulated clearing, positioning Bullish as the first global regulated crypto clearing house. Bullish plans to launch its Clearing Services and Options trading later this year, progressing toward a fully operational, standalone clearing house under the new regime. The CEO of Bullish Group, Tom Farley, stated:
“There is currently no regulation that specifically addresses the clearing needs of the crypto industry. We aim to change that by introducing a framework that manages risk for virtual asset trading and is aligned with traditional market infrastructure standards. While Central Counterparties have become more robust in other asset classes, this initiative will bring that same robust risk management and regulatory oversight to the crypto clearing space that EMIR & Dodd-Frank brought to traditional derivatives markets. We welcome the announcement from the government of Gibraltar and look forward to introducing our joint proposal to the market.”
His Majesty’s Government of Gibraltar expressed its enthusiasm for the framework, which fosters trust, resilience, and integrity in virtual asset markets. The Minister for Financial Services, Hon Nigel Feetham KC MP, noted:
“Gibraltar is renowned for pioneering clear regulation and embracing forward-looking technology, being the first jurisdiction globally to introduce legislation for firms using Distributed Ledger Technology. We are excited to deepen our relationship with Bullish and to introduce this unprecedented virtual asset clearing solution to the market.”
Back in December 2024 Bullish Group acquired three BaFin licenses in Germany for crypto custody, proprietary trading, and principal brokerage. This mean the U.S.-based exchange is capable of expanding throughout Europe under the rules of MiCA.
Have a great day.
Peace. CryptoGod-1.
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