The Gibraltar government said it plans to establish the world’s first rules for compensation and solution of cryptographic derivatives, creating a regulatory framework to improve market integrity and reduce key risks.
Working with the Gibraltar Financial Services Commission (GFSC) and Crypto Exchange Bullish (whose owner, Bullish Group, is also Coindesk’s father), the government has built a framework in the last six months that adapts the traditional regulations of financial compensation to the virtual asset market.
The frame will allow virtual asset derivative contracts to be clear and resolved by a recognized compensation house, he said Tuesday.
Compensation houses ensure that exchanges are completed, and buyers and vendors fulfill their commitments. Many exchanges of virtual assets have been performing that function that, in the absence of regulatory supervision, can lead to failures in the process, said Bullish.
The proposed regime will allow the establishment of separate compensation houses with “improved transparency and capitalization,” he said.
Read more: the first place of trade of cryptographic derivatives regulated by the FCA of the United Kingdom GFO-X debuts in London
Correct (May 13, 15:34 UTC): Correct that the Coindesk parent company is an upward group, not the exchange of bullish cryptography.
