Bullish, the cryptocurrency exchange backed by Peter Thiel, has partnered with the Government of Gibraltar and the Gibraltar Financial Services Commission to co-develop a regulatory framework for the clearing and settling crypto derivatives.
This strategic collaboration reflects Bullish’s commitment to bringing traditional market standards to the crypto sector. CEO Tom Farley emphasized the urgency of the initiative, pointing out that the industry currently lacks specific regulations addressing clearing crypto derivatives. He added that the goal is to implement the same rigorous risk management and regulatory oversight that frameworks like EMIR and Dodd-Frank have introduced to traditional derivatives markets.
As part of the new framework, select cryptocurrencies may be permitted to function as both collateral and settlement assets. While the announcement did not specify which tokens would be included, the initiative also broadens the types of institutions eligible to hold collateral—a move Bullish believes will increase market participation and build greater investor confidence.
To further enhance transparency and reduce systemic risk, the framework establishes a regulated clearing house that will operate independently of the exchange. This separation is intended to create a more secure and accountable trading environment for crypto derivatives.
Gibraltar’s role in this development underscores its leadership in regulatory innovation. Nigel Feetham KC MP, the territory’s Minister for Financial Services, noted that Gibraltar was the first jurisdiction globally to legislate for firms utilizing distributed ledger technology, reinforcing its position as a pioneer in digital asset regulation.
Building on its global expansion, Bullish has also secured regulatory approval from the Hong Kong Securities and Futures Commission (SFC). In a blog post published on February 19, the company revealed that its subsidiary, Bullish HK Markets Limited, has received Type 1 (dealing in securities) and Type 7 (automated trading services) licenses and approval to operate a Virtual Asset Trading Platform. These licenses enable Bullish to offer regulated digital asset services to institutional and professional investors in Hong Kong, further strengthening its international presence.
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