Deribit Plans to Relocate HQ to Dubai from Panama

Officially launched in June 2016, Deribit has grown exponentially to offer perpetual, futures, and options contracts on Bitcoin, Ethereum, and many other digital assets.

Deribit, a cryptocurrency futures and options exchange based in Panama City, is planning to relocate its headquarters to Dubai, a more crypto-friendlier nation, in the coming quarters. According to a report by Bloomberg, Deribit intends to apply for a Full Market Product license to Dubai’s Virtual Assets Regulatory Authority once the agency gives an update on its regulatory protocols. As such, David Dohmen, chief legal compliance and regulatory officer at Deribit, noted that the company is a few quarters away from getting its products regulated by a crypto-friendly nation.

Furthermore, the collapse of FTX and Alameda has accelerated the need for crypto exchanges to get registered to retain global customers. Moreover, crypto trading volume significantly declined after the FTX saga and more traders migrated en masse to decentralized exchanges (DEXes)  and non-custodial wallets.

“We’ve had a number of clients who basically intimated to us that they would like to trade on a crypto exchange that’s actually regulated,” Dohmen said. “In Panama, we are not regulated. Also, we saw where the regulatory winds were blowing, and there was a drive toward regulation across the globe.”

Dubai has made significant regulatory progress in shaping the cryptocurrency industry and Deribit feels bullish with its headquarters located in the Sun-bathed nation.

“We felt that the whole regulatory regime was more tailored to crypto than other jurisdictions,” Dohmen said. “It’s more flexible. The government and the regulator are welcoming crypto as a product.”

Closer Look at Deribit and Crypto Market in Dubai

Officially launched in June 2016, Deribi has grown exponentially to offer perpetual, futures, and options contracts on Bitcoin, Ethereum, and many other digital assets. By venturing into the Middle East nation, Deribit intends to widen its market to European and Asian countries. Moreover, Deribit remains the leading exchange offering European-style cash-settled crypto options.

The entrance into the Dubai market will increase competition in the industry as other leading exchanges including Binance have already set up camp and been regulated by relevant agencies.

Meanwhile, Deribit is now also working to appoint a well-known auditor, according to Luuk Strijers, Deribit’s chief commercial officer. Reportedly, Deribit’s Dubai office will have about 10 people, a mix of core employees and local hires. However, some of the Dubai employees will continue working remotely from Panama.

Deribit reported a profitable 2022 despite being impacted by the collapse of hedge fund Three Arrows Capital, according to the company’s official. The growth is largely attributed to institutional investors who continue to increase their crypto exposure despite the sustained bear market.

Blockchain News, Cryptocurrency news, News

Steve Muchoki

Let’s talk crypto, Metaverse, NFTs, CeDeFi, and Stocks, and focus on multi-chain as the future of blockchain technology.
Let us all WIN!

Source link

Read Previous

Coinbase Fined $3.6M by Dutch Regulator for Failure to Register

Read Next

Ex-UK Chancellor Philip Hammond Urges Accelerated Efforts to Become Crypto Hub: FT