Deribit to Move Entire Business to Dubai in January after Acquiring VASP License

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As a seasoned analyst with over two decades in the financial markets, I’ve seen my fair share of shifts in regulatory landscapes and market trends. The move by Deribit to consolidate its operations in Dubai under VARA’s license is a strategic decision that aligns with the global trend towards regulatory compliance in the crypto space.

Come January 1, 2025, I’m excited to share that as a crypto investor, I’ll be transitioning my activities with Deribit, the preferred derivatives exchange for digital assets, from Panama to Dubai. This move is scheduled for November 29, 2024, and it’s an exciting step forward in the evolving world of crypto trading!

Following the acquisition of a Virtual Assets Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), this company, renowned for its diverse digital asset trading options, has taken a major step forward in its international growth strategy.

Consolidating Operations under VARA’s License

By merging all operations, Deribit will now operate solely through its Dubai-based entity, Deribit FZE. This single platform will provide access to all the exchange’s offerings, such as spot trading, perpetuals, futures, options, and post-trade services.

The organization announced that it is relocating its business activities due to increasing interest in controlled and safe cryptocurrency platforms. Notably, the UAE is quickly emerging as a leading center for advancements in digital asset technology.

According to Luuk Strijers, CEO of Deribit, we think Dubai’s progressive regulatory structure provides an excellent base for our growth. This decision reinforces our dedication to providing top-tier services while maintaining the utmost transparency and compliance standards. In simpler terms, by moving to Dubai, we are confident that we can continue to serve our institutional clients effectively as their needs evolve, all while adhering to the strictest regulations.

2025 marks the beginning of Deribit’s process where they will bring on board institutional and professional investors directly through their Dubai-regulated platform. Simultaneously, retail clients will still be catered to via Deribit’s Panama-based entity that functions as a broker member within Deribit FZE.

By December 31, 2024, it’s essential that all Deribit users accept the new conditions outlined in our Terms of Service for a seamless integration process.

Furthermore, it’s important to note that all customers must undergo a compulsory verification process known as Know Your Customer (KYC). Failure to comply with these requirements may result in account restrictions to a “read-only” mode, which means you can only close existing positions but cannot open new ones.

Dubai Becomes a Favourite Location for Crypto Exchanges

Simultaneously, Deribit is moving its operations to Dubai, which is part of a larger trend where global cryptocurrency companies are settling in the region. The city’s transparent regulatory structure and welcoming business environment make it an appealing destination for top crypto exchanges. Notable platforms like Bybit, OKX, and Ripple have either started or expanded their businesses in the UAE, primarily due to its forward-thinking approach towards digital currencies.

In a welcoming tax climate, companies such as Kraken have chosen to establish operations in Dubai, under the oversight of the Virtual Asset Regulatory Authority (VARA). Similarly, Binance has made a significant impact in the area by obtaining licenses to provide regulated trading services.

In a nutshell, this city offers a favorable tax system and strong legal structure, which makes it an excellent choice for businesses aiming for regulatory certainty as they target a burgeoning community of cryptocurrency investors across the Middle East and beyond.

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2024-11-29 16:48