Bullish partners with the Gibraltar Government and GFSC to pioneer world's first crypto clearing regulation

GIBRALTAR, May 13, 2025 /PRNewswire/ — Bullish, one of the fastest-growing regulated virtual asset exchanges, today announced its partnership with the Gibraltar Government and the Gibraltar Financial Services Commission (GFSC) to develop the world's first regulation for the clearing and settlement of derivative contracts settled in virtual assets.

The government of Gibraltar has partnered with the Gibraltar Financial Services Commission (GFSC) and one of the fastest-growing regulated virtual asset exchanges, Bullish, to develop the world’s first regulation for the clearing and settlement of derivative contracts settled in virtual assets.

This innovation will enable recognized clearing houses to clear and settle virtual asset derivative contracts in virtual assets, a capability that is currently not supported by traditional fiat-based clearing and settlement infrastructure.

The initiative also marks a significant milestone in the evolution of virtual asset regulation.

Over the past six months, Bullish and the GFSC have collaborated and agreed to adapt traditional finance clearing regulations with the unique requirements and capabilities of the virtual asset market.

For example, select virtual assets may be eligible as collateral and settlement currency, following the selection criteria and principles underpinning existing traditional clearing regulations. Additionally, the framework will expand the range of institutions authorized to hold collateral, enhancing market integrity and participation while mitigating key risks.

Setting the standard for a crypto clearing solution

Major virtual asset exchanges have already been performing the clearing function without appropriate regulatory oversight, leading to failures that have impacted customers. The proposed regime will introduce a regulated clearing house entity, separate and independent from the exchange and its participants, with improved transparency and capitalization to further strengthen market infrastructure protection.

In a separate announcement, His Majesty’s Government of Gibraltar expressed its enthusiasm for the framework, which fosters trust, resilience, and integrity in virtual asset markets.

Bullish warmly welcomes their announcement and is excited to work alongside the government and GFSC to bring this groundbreaking regulatory framework to fruition.

“There is currently no regulation that specifically addresses the clearing needs of the crypto industry. We aim to change that by introducing a framework that manages risk for virtual asset trading and is aligned with traditional market infrastructure standards,” said Tom Farley, Bullish Group CEO.

“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. We welcome the announcement from the government of Gibraltar and look forward to introducing our joint proposal to the market.”

The Hon Nigel Feetham KC MP, Minister for Financial Services adds, “Gibraltar is known for pioneering clear regulation and engaging with forward-thinking technology. We were the first jurisdiction globally to introduce legislation for firms using Distributed Ledger Technology. We are excited to deepen our relationship with Bullish and to introduce this unprecedented virtual asset clearing solution to the market.”

Bullish exchange poised to become first regulated virtual asset clearing house globally

In anticipation of the new framework, Bullish plans to introduce its Clearing Services offering alongside Options trading later this year. This initial launch will integrate a variety of clearing benefits into the market as Bullish moves toward establishing a standalone clearing house.

With licenses from the GFSC, the German Federal Financial Supervisory Authority (BaFin), and the Hong Kong Securities and Futures Commission (SFC), Bullish is well-positioned to set the standard for virtual asset clearing solutions.

“Our long-term goal is to establish a robust regulatory framework that not only meets the current needs of the virtual asset ecosystem but also anticipates future developments. This initiative underscores our commitment to operating a regulated, compliant exchange that supports institutional participation with an end-to-end clearing solution,” said Randi Abernethy, Head of Clearing and Group Risk at Bullish.

“Several market participants have already voiced strong support for our business model because they recognize the value of regulated central clearing. We look forward to Bullish becoming the first operational regulated digital assets clearing house in the world.”

In advance of this, Bullish will form a clearing member working group to bring industry leaders together to share their expertise, establish the initial clearing network, and enhance the robustness of Bullish’s clearing ecosystem.