- Gibraltar to establish crypto derivatives clearing rules with Bullish, GFSC.
- First framework of its kind in digital asset space.
- Aims to align crypto clearing with traditional financial practices.
Gibraltar announced its plan on May 14 to develop the world’s first cryptocurrency derivatives clearing and settlement rules with Bullish Exchange and the Gibraltar Financial Services Commission (GFSC). Offering a novel regulatory advancement, this framework aims to enhance market integrity and reduce risks within the crypto industry.
Gibraltar’s government, in collaboration with Bullish Exchange and the Gibraltar Financial Services Commission (GFSC), is launching this new regulatory endeavor. Tom Farley, CEO of Bullish, pointed out the lack of regulation addressing the unique needs of crypto clearing. “There is currently no regulation that specifically addresses the clearing needs of the crypto industry,” he highlighted, further stating the initiative will bring robust risk management and regulatory oversight. Nigel Feetham, Gibraltar’s Minister for Financial Services, emphasized the territory’s pioneering role in tech regulations.
Bridging Traditional and Digital Financial Practices
Gibraltar’s venture draws from its history of embracing crypto-friendly policies, notably pioneering DLT regulations. The new framework seeks to address issues in the crypto derivatives market by adapting traditional financial safeguards. With Bullish anticipated to launch Clearing Services later in 2025, the framework is positioned to standardize practices across the industry.
The initiative is set to boost institutional confidence in crypto derivatives trading, potentially increasing global regulatory interest in similar endeavors. By aligning with established financial market structures, Gibraltar aims to mitigate risks and facilitate a smoother integration of digital assets into mainstream finance.
Source: https://coincu.com/337486-gibraltar-crypto-derivatives-framework/