Gibraltar works with Exchange Bullish to introduce a regulated framework for the removal of cryptographic derivatives, aiming to separate transaction and settlement capabilities.
Supported by Peter Thiel, Cryptocurrency Exchange Bullish has partnered with the Gibraltar government and the Gibraltar Financial Services Committee to develop a regulatory framework to clear and resolve crypto-derived agreements.
In a press release Tuesday, the exchange said it would now bring the same level of risk management and surveillance to the crypto sector as it “is no regulations specifically address the clearing needs of the crypto industry.”
“While the central counterparties have become more robust in other asset classes, this initiative brings the same robust risk management and regulatory oversight into the cryptographic clearing space Emir & Dodd-Frank brought to traditional derivative markets.”
Tom Farley
This framework allows certain cryptocurrencies to be used as collateral and settlement currency, but the press release does not list either. It also expands which institutions can retain collateral. This says Bullish will boost market participation and trust.
The new model introduces a separate regulated clearing house from the exchange itself to increase transparency and reduce the risks of market participants.
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Nigel Feetham KC MP, Minister of Financial Services, said Gibraltar is “known for pioneering clear regulations” and is “a global first law for introducing corporate law using distributed ledger technology.” Bullish will also launch clearing services later this year and introduce options trading, but have not yet shared a specific timeline.
Brendan Blumer block. He launched Bullish in 2021, supporting the exchange with $10 billion in funding. That capital includes both cash and crypto, starting with an initial injection of $100 million, 164,000 BTC and 20 million EO. Bruisch raised an additional $300 million through its strategic investment round.
read more: Crypto Exchange Bullish acquires Coindesk from the digital currency group
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