The Gibraltar government said it plans to establish the world’s first rules for clearing and settlement of cryptoderivatives, creating a legislative framework to improve market integrity and reduce key is risk.

Working with Gibraltar Financial Services Commission (GFSC) and Crypto Exchange Bullish (whose owner, Bullish Group, is also the parent of Coindesk), the government has built a framework in the last six months tailoring traditional financial clearing rules to the virtual asset market.

The framework will make it possible to clear and be wound up by a recognized clearing house, Bullish said Tuesday Tuesday.

Clearing houses ensure that trades are completed, with buyers and sellers who fulfill their obligations. Many virtual asset exchanges have performed the function which, in the absence of regulatory supervision, can lead to failures in the process, Bullish said.

The proposed regime will enable the establishment of separate clearing houses with “improved transparency and activation,” it said.

Read more: UK’s first FCA-regulated cryptoderivats trading locations GFO-X debut in London

Correct (13 May 15:34 UTC): Corrects that Coindesk’s parent company is a bullish group, not Crypto Exchange Bullish.