On May 13, 2025, Gibraltar's government teamed up with Bullish, a crypto exchange backed by Peter Thiel and Block.one, to create the world’s first regulatory framework specifically for clearing and settling crypto derivatives with virtual assets.
This innovative framework adapts traditional finance (TradFi) risk management principles from regulations like EMIR and Dodd-Frank to the crypto derivatives market, aiming to enhance market transparency, mitigate systemic risks, and align crypto markets with strict regulatory standards.
The initiative involves the establishment of a regulated, independent clearing house that separates trading from settlement functions, a role previously often performed by exchanges themselves without sufficient oversight. Under this framework, select cryptocurrencies will be accepted as collateral and settlement currency, expanding institutional participation and market integrity.
Bullish’s clearing house will operate under this regime, with plans to launch clearing services and options trading later in 2025. The Gibraltar Financial Services Commission (GFSC) will set capital and liquidity rules, adjusted for the volatility unique to digital assets, aiming to enforce robust risk management safeguards.
Gibraltar’s Minister for Financial Services, Nigel Feetham, emphasized the jurisdiction’s leadership in pioneering Distributed Ledger Technology (DLT) legislation and now this unprecedented clearing solution for crypto derivatives.
Further integrating regulatory and institutional advancements, Bullish has expanded its European presence after acquiring BaFin licenses in Germany for crypto custody and trading, and appointed experienced executives to lead growth. These developments align with broader crypto regulatory initiatives such as the EU’s MiCA regulation and evolving U.S. policies.
Industry observers note this partnership and framework could serve as a model for other jurisdictions, offering concrete data on balancing innovation with systemic safeguards in crypto markets.