Gibraltar will establish rules for the clearing and settlement of crypto derivatives to enhance market integrity

ChainCatcher news, according to CoinDesk, the government of Gibraltar has announced its plan to establish the world's first clearing and settlement rules for cryptocurrency derivatives, creating a regulatory framework to enhance market integrity and reduce major risks. Over the past six months, the Gibraltar government has collaborated with the Gibraltar Financial Services Commission (GFSC) and the cryptocurrency exchange Bullish to develop a framework that adapts traditional financial clearing regulations to the virtual asset market.

Bullish stated on Tuesday that this framework will allow recognized clearinghouses to clear and settle virtual asset derivative contracts; many virtual asset exchanges have been performing this function, but the lack of regulatory oversight may lead to issues in the clearing process. The proposed system will allow for the establishment of independent clearinghouses, which will have "higher transparency and capital adequacy."