Gibraltar Government announces new digital clearing and settlement framework

The Government of Gibraltar has announced the development of the world’s first regulatory framework for the clearing and settlement of virtual asset derivatives through regulated central counterparties.

The initiative is being developed in partnership with the Gibraltar Financial Services Commission (GFSC) and Bullish, a virtual asset exchange operating in Gibraltar. Drafting work on the legislation is currently under way.

The new framework will establish risk management standards aligned with traditional derivatives markets, while being tailored to the distinct characteristics of virtual asset derivative markets. It will address areas such as market risk, counterparty exposure, settlement finality and custodial safeguards, and will support effective regulatory oversight.

The framework is the result of a public-private partnership established by the Minister for Financial Services, Nigel Feetham, and includes representatives from the GFSC, the Government, Bullish and Bullish-appointed private sector specialists.

Mr Feetham said: “This initiative reflects Gibraltar’s ongoing commitment to responsible innovation. We are proud to lead on the global stage by introducing a framework that fosters trust, resilience, and integrity in virtual asset markets.”

“Bullish was one of the first DLT firms established in Gibraltar and they are a significant player in the international market place. The work we have done together on the proposed clearing and settlement framework will once again keep Gibraltar at the forefront of regulatory development in the virtual assets space.”

“I am grateful to Bullish and the GFSC and their teams for their excellent work in partnering together to deliver this innovative framework, and I am very much looking forward to its introduction and the creation of a new line of business for our industry.”

Bullish Group CEO Tom Farley welcomed the announcement.

“We are excited to be working with the Gibraltar Government and grateful to Minister Nigel Feetham for his energy and enthusiasm in supporting these proposals,” he said.

“This partnership between the private sector, the Government, and the Regulator exemplifies how innovation can thrive within a robust regulatory framework, benefiting everyone involved and bringing greater confidence to the marketplace.”

The Government expects to begin consultation with the industry following the drafting of legislation.