Bullish has partnered with the Gibraltar Government and its Financial Services Commission (GFSC) to develop a regulatory first.
The partnership’s aim is to regulate the clearing and settlement of derivative contracts settled in virtual assets.
“There is currently no regulation that specifically addresses the clearing needs of the crypto industry,” said Tom Farley, Bullish Group CEO.
“We aim to change that by introducing a framework that manages risk for virtual asset trading and is aligned with traditional market infrastructure standards.”
Once finalised, the regulation will enable virtual asset contracts to be cleared and settled in virtual assets by a recognised clearing house for the first time.
This initiative moves beyond the constraints of traditional fiat-based clearing and settlement infrastructure, marking a notable step in the development of virtual assets.
“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,” said The Hon Nigel Feetham KC MP, Minister for Financial Services.
“We are excited to deepen our relationship with Bullish and to introduce this unprecedented virtual asset clearing solution to the market.”
Bullish and the GFSC have collaborated over the past six months to develop an interoperable regulatory framework aligned with traditional finance clearing regulations.
“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,” added Farley.
