Nikolas Sargeant
The British territory has partnered with Peter Thiel-backed Bullish to establish the world's first regulatory framework for cryptocurrency derivatives clearing and settlement, positioning Gibraltar at the forefront of institutional crypto infrastructure.
Gibraltar's government and financial services regulator (GFSC) announced a landmark partnership with cryptocurrency exchange Bullish on May 13 to develop the world's first comprehensive regulatory framework for clearing and settling crypto derivatives using virtual assets. The Peter Thiel and Block.one-backed exchange will help implement rules designed to separate trading and settlement functions through a regulated, independent clearing house.
This pioneering initiative aims to enhance market transparency, mitigate counterparty risks, and align cryptocurrency markets with established traditional finance standards such as the European Market Infrastructure Regulation (EMIR) and the Dodd-Frank Act. Industry experts view the framework as a critical step toward institutional-grade cryptocurrency infrastructure.
Regulated Clearing House Designed to Accelerate Institutional Adoption
Randi Abernethy, Bullish's Head of Clearing, emphasized that the framework specifically targets institutional adoption through regulated clearing services. "This positions Bullish to become the first globally regulated cryptocurrency clearing house, addressing a critical market need," Abernethy explained.
The framework introduces several innovative elements, including allowing select cryptocurrencies to serve directly as collateral and settlement currency. Additionally, it will expand the pool of institutions authorized to hold collateral, significantly boosting market participation while maintaining robust risk management standards.
Bullish has announced plans to launch its Clearing Services and Options trading products later this year as part of its progression toward establishing a fully operational, standalone clearing house under the new regulatory regime.
Tom Farley, Bullish CEO, highlighted the significance of addressing the regulatory gap, noting that "currently, no specific clearing regulations exist for cryptocurrency derivatives markets. This framework will bring robust risk management and regulatory oversight to an area that desperately needs it."
Strategic European Expansion Through Regulatory Leadership
Gibraltar's Minister for Financial Services, Nigel Feetham KC MP, underscored the territory's continued regulatory innovation in the digital asset space. "Gibraltar pioneered Distributed Ledger Technology legislation and now continues that leadership by introducing this unprecedented clearing solution," he stated, reinforcing Gibraltar's reputation as a forward-thinking financial jurisdiction.
Bullish has strategically positioned itself for European expansion, acquiring three BaFin licenses in Germany in December 2024 for cryptocurrency custody, proprietary trading, and principal brokerage services. These regulatory approvals enable the U.S.-based exchange to operate across the European Economic Area under the Markets in Crypto-Assets (MiCA) framework, with Frankfurt's Tradias Bank becoming its first German client.
The exchange has strengthened its European leadership by appointing Marco Bodewein, former CEO of Bitcoin Group SE and Futurum Bank AG board member, as managing director for its German operations. More recently, in March 2025, Chris Tyrer was promoted to President of Bullish Exchange to drive growth following regulatory expansions in Europe and Hong Kong, focusing on institutional offerings and further regulatory development.
Government Partnerships Emerge as Key Crypto Exchange Strategy
The Gibraltar-Bullish partnership reflects a broader industry trend of cryptocurrency exchanges pursuing large-scale government collaborations. Dubai recently formalized a partnership with Crypto.com at the Dubai Fintech Summit to enable cryptocurrency payments for government services through digital wallets, with transactions converted to UAE dirhams to support Dubai's goal of achieving 90% cashless transactions by 2026.
Similarly, Binance has established a partnership with Kyrgyzstan to implement nationwide cryptocurrency payments via Binance Pay alongside a comprehensive blockchain education program. This collaboration, formalized with President Sadyr Zhaparov, positions Kyrgyzstan as an emerging regional digital finance hub while supporting the country's plans to launch a central bank digital currency by 2027.
