Gibraltar develops rules for crypto derivatives clearing

The goal is to address operational risks and improve transparency in the virtual asset market. The new framework has been developed through collaboration between the Gibraltar Financial Services Commission (GFSC), government authorities, and crypto exchange Bullish. 

The initiative will allow the establishment of recognised clearing houses responsible for handling the finalisation of derivative trades involving virtual assets. Clearing houses typically act as intermediaries to ensure both buyers and sellers meet their obligations, a function that, in the digital asset sector, has often been carried out by exchanges themselves without regulatory scrutiny. 

According to officials from Bullish, the lack of oversight in this area has increased the potential for settlement failures and operational risks. The introduction of independent clearing institutions, supported by clear regulatory guidelines, is expected to bring more structure and accountability to the market.

Linking traditional and digital market infrastructures 

The new rules aim to adapt principles from conventional financial clearing systems to the context of crypto derivatives. Government representatives indicated that the regulatory approach is designed to align with global standards while reflecting the unique characteristics of digital assets. 

Once in place, the regime is expected to allow the creation of clearing houses with enhanced governance standards, financial resilience, and operational transparency. A representative from the Gibraltar government noted that these steps form part of recent efforts to improve the integrity of the crypto derivatives ecosystem and align it more closely with established financial practices.