Regulating Crypto Derivatives: Gibraltar and Bullish Pioneer a New Way
A Shift in the Crypto Clearing Landscape
Crypto exchange Bullish, financially backed by Peter Thiel, collaborates with Gibraltar to construct a régime for cryptocurrency settlements.
Gibraltar, known for its progressive financial regulations, and crypto exchange Bullish have teamed up to create an innovative regulatory framework for crypto derivatives clearing and settlement. This move seeks to bring the same level of oversight and risk management seen in traditional markets to the crypto space [1][2][3].
The New Crypto Derivatives Clearing Framework
The framework, endorsed by the Gibraltar Financial Services Commission (GFSC), will offer a regulated clearinghouse separate from the exchange itself. This setup aims to enhance transparency, mitigate risks, and foster trust amongst market participants [1].
Collateral and Settlement
Though specific cryptocurrencies for use as collateral and settlement aren't listed, the framework is designed to accommodate a range of digital assets common in the crypto derivatives market [1]. By expanding the pool of institutions able to hold collateral, Bullish expects to boost market participation and trust [1].
A Step towards Global Standards
Nigel Feetham KC MP, Minister for Financial Service, noted that Gibraltar is at the forefront of clear regulation and embracing technology, having been the first jurisdiction to introduce legislation for DLT firms [2]. The new regulatory framework could serve as a template for other regions, driving towards more standardized and robust crypto derivatives markets worldwide [4].
Bullish: A Powerful Spot in the Crypto Market
Bullish, backed by Peter Thiel and launched by Block.one's Brendan Blumer, aspires to bring structure and accountability to the virtual asset market with its regulatory-driven framework [1]. The exchange, funded with $10 billion [2], operates with a unique blend of cash and crypto assets, starting with an initial $100 million injection, 164,000 BTC, and 20 million EOS [2]. Additionally, Bullish raised an extra $300 million through strategic investment [2].
The Bullish Agenda: New Opportunities and Growth
Bullish has plans to unveil its clearing services and introduce options trading later this year, but without a precise timeline [2]. Notably, Bullish recently acquired CoinDesk from Digital Currency Group [3]. This acquisition expands Bullish's resources and expertise, further positioning it as a prominent player in the evolving crypto market.
- The innovative regulatory framework for crypto derivatives clearing and settlement, spearheaded by Gibraltar and Bullish, aims to utilize digital assets like tokens for collateral and settlement within the crypto derivatives market.
- Bullish, backed by Peter Thiel and led by Brendan Blumer, plans to introduce options trading and clearing services using its unique regulatory-driven framework, which includes a combination of cash and crypto assets.
- Bullish's acquisition of CoinDesk from Digital Currency Group is expected to boost its presence in the crypto market, providing it with expanded resources and expertise in the field of technology and cryptocurrencies.
