Key Takeaways:
- Gibraltar’s framework applies TradFi risk management to crypto derivatives, setting a new regulatory standard.
- Bullish’s clearing house will accept crypto as collateral, expanding institutional participation.
- The partnership could influence broader crypto regulations, including EU MiCA and U.S. policies.
Bullish, a crypto exchange backed by Peter Thiel and Block.one, teamed up with Gibraltar’s government and financial watchdog (GFSC) on May 13 to create the world’s first rules for clearing and settling crypto derivatives with virtual assets.
This initiative seeks to separate trading and settlement functions by introducing a regulated, independent clearing house to enhance transparency, mitigate risks, and align crypto markets with traditional finance standards such as EMIR and Dodd-Frank.
Can Bullish’s Clearing House Bridge Crypto and Traditional Finance?
Randi Abernethy, Bullish’s Head of Clearing, said the framework is designed to support institutional adoption through regulated clearing, positioning Bullish as the first global regulated crypto clearing house.
Under the proposed framework, select cryptocurrencies will serve as collateral and settlement currency.
The new rules will also expand the pool of institutions authorized to hold collateral, boosting market participation while ensuring integrity.
Bullish plans to launch its Clearing Services and Options trading later this year, progressing toward a fully operational, standalone clearing house under the new regime.
Tom Farley, CEO of Bullish, emphasized the current lack of crypto-specific clearing regulations, stating that the framework will bring “robust risk management and regulatory oversight.”
Gibraltar’s Minister for Financial Services, Nigel Feetham KC MP, noted the jurisdiction’s leadership in pioneering tech-forward regulations, including Distributed Ledger Technology (DLT) laws.
“Gibraltar pioneered DLT legislation and now continues that leadership by introducing this unprecedented clearing solution,” he said.
Will Veteran Hires Unlock Europe’s Crypto Market?
In late December 2024, Bullish Group acquired three BaFin licenses in Germany for crypto custody, proprietary trading, and principal brokerage.
This allows the U.S.-based exchange to expand across the European Economic Area under MiCA. Bullish named Frankfurt’s Tradias Bank (a digital asset trading firm serving banks, fintech, and institutions) its first German client.
The exchange then appointed Marco Bodewein, ex-CEO of Bitcoin Group SE and Futurum Bank AG board member, as managing director to lead its German operations.
Later on in March 2025, Chris Tyrer was promoted to President of Bullish Exchange to drive growth following its recent regulatory expansions in Europe and Hong Kong. He previously served as VP and Head of Institutional, growing Bullish’s institutional client base.
Tyrer will focus on expanding Bullish’s institutional offerings and regulatory footprint.
Rob Quinlivan, outgoing CEO of Bullish (replaced by Tom Farley), transitioned to government relations and partnerships, as the exchange plans to grow its licensing list.
What’s Driving Crypto Exchanges to Partner With Governments?
Crypto exchanges are now shifting their services to include large-scale government partnerships and support.
For example, Dubai partnered with Crypto.com to allow crypto payments for government services via its digital wallets, which were formalized at the Dubai Fintech Summit.
These transactions will be converted to UAE dirhams, supporting Dubai’s goal of achieving 90% cashless transactions by 2026. The initiative will focus on stable cryptocurrencies, and it currently aligns with Abu Dhabi’s plans for a sovereign stablecoin.
Dubai estimates the shift could add $2.1 billion to its economy through fintech growth.
Additionally, Binance agreed to a partnership with Kyrgyzstan to deploy nationwide crypto payments via Binance Pay and a blockchain education program across the country.
The collaboration, formalized with President Sadyr Zhaparov, seeks to position Kyrgyzstan as a regional digital finance hub.
Binance Academy will train officials, businesses, and citizens, while founder Changpeng Zhao (CZ) joins as a regulatory advisor.
This aligns with Kyrgyzstan’s plan to launch a central bank digital currency (digital SOM) by 2027 and builds on $1 million in 2023 crypto mining tax revenue, accelerating the nation’s blockchain-driven economic modernization.
Frequently Asked Questions (FAQs)
Gibraltar’s framework merges EMIR/Dodd-Frank principles with crypto-specific adaptations. Other regulators may examine this hybrid approach. Some could adopt similar structures if they prove effective in practice.
Gibraltar’s financial authorities will set capital and liquidity rules. They’ll base these requirements on traditional clearing house standards, but must account for crypto’s volatility. The framework will mandate reserves while adjusting for digital assets’ unique risk patterns.
This framework offers regulators concrete data. It demonstrates how one jurisdiction balances innovation with systemic safeguards. Early results from Gibraltar could guide other markets in developing their own approaches, or they might choose entirely different paths.
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