Bullish Partners with Government of Gibraltar to Launch First Regulated Crypto Clearing Framework

Crypto exchange Bullish has announced a strategic partnership with the Government of Gibraltar and the Gibraltar Financial Services Commission (GFSC) to pioneer the world’s first regulatory framework for clearing and settlement of virtual asset derivatives.

This new regulatory initiative aims to fill a critical void in crypto infrastructure by enabling the clearing and settlement of crypto derivative contracts through a recognized and regulated clearing house, a first for the virtual asset sector. The framework proposes a shift away from traditional fiat-based infrastructure and into a new era of crypto-native, regulated clearing mechanisms.

Over the last six months, Bullish and Gibraltar’s financial authorities have worked together to craft a regulatory framework that adapts traditional finance (TradFi) clearing regulations, such as those enforced under EMIR and Dodd-Frank, to the crypto ecosystem.

Under the proposed model, certain virtual assets may be deemed eligible as both collateral and settlement currency, with selection criteria rooted in existing regulatory standards. The framework also expands the scope of institutions allowed to hold collateral, boosting transparency, mitigating risk, and improving participation in the market.

Tom Farley, CEO of Bullish Group, commented:

“There is currently no regulation that specifically addresses the clearing needs of the crypto industry. This framework brings robust risk management to crypto trading, akin to what EMIR and Dodd-Frank have done for traditional derivatives.”

Historically, major crypto exchanges have often handled their own clearing functions, without independent regulatory oversight, leading to customer losses and systemic vulnerabilities. The proposed Gibraltar framework introduces a fully independent clearing house, distinct from trading venues and market participants, with enhanced capitalization and regulatory guardrails.

The Hon Nigel Feetham KC MP, Gibraltar’s Minister for Financial Services, noted,

“We are proud to continue leading on crypto regulation. Gibraltar was the first jurisdiction to regulate DLT firms. This new initiative with Bullish cements our position as a global pioneer.”

Bullish to Launch Clearing Services and Options Trading in 2025

In anticipation of regulatory approval, Bullish is preparing to launch its own Clearing Services later this year, alongside a new Options trading platform. These services are part of Bullish’s long-term goal to establish a regulated, crypto-native clearing house.

The exchange, already licensed by the GFSC, BaFin (Germany), and the SFC (Hong Kong), is well-positioned to become the first operational regulated clearing house for digital assets globally.

“Our mission is to support institutional-grade infrastructure in the digital asset space. This framework enables a compliant, end-to-end clearing solution. We’ve already seen significant institutional interest,” added Randi Abernethy, Head of Clearing and Group Risk at Bullish

Bullish also plans to establish a Clearing Member Working Group, bringing together institutional stakeholders to help refine the clearing network and ensure industry-wide input in the final implementation.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by the Editorial Team.

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