Deribit to Shift Headquarters to Dubai Following VASP License Approval
Summary:
Deribit, a significant cryptocurrency exchange specializing in derivatives trading, has obtained a Virtual Asset Service Provider (VASP) license from the Virtual Asset Regulatory Authority (VARA) in Dubai. The license will enable the company to offer cryptocurrency trading services in Dubai. Deribit is also shifting its global headquarters from Panama to Dubai and appointing Luuk Strijers, the previous chief commercial officer, as the new CEO. Once operational, the exchange will cater to institutional and qualified investors in Dubai, while continuing to serve retail clients from its broker affiliate in Panama.
Deribit, an eminent exchange that hosts cryptocurrency futures and options, is planning to shift its operations to Dubai following the receipt of regulatory approval from the local authorities. The Dubai-based Deribit FZE, a unit of the Deribit group, has been granted a Virtual Asset Service Provider (VASP) certificate by the Virtual Asset Regulatory Authority (VARA) in Dubai, as declared on April 2. This fresh permit permits Deribit to broaden its crypto transaction services in the Dubai market, incorporating both instant trades and crypto derivative transactions like futures and options. However, only upon completion of all remaining conditions and selection of requirements as per VARA’s localization stipulations, Deribit's VASP license will become operational. The exchange has plans to share its launch details, including terms and tentative timing, for operations under the newly-licensed entity.
Once it's effective, Deribit will cater to institutional investors and qualified individuals in Dubai, while operating from its broker affiliate in Panama, part of the Dubai-based Deribit FZE, for its retail clientele until further notification. Besides receiving the license, Deribit also plans to relocate its global headquarters from Panama to Dubai, with Luuk Strijers, its ex-chief commercial officer, slated to be the new CEO.
John Jansen, Deribit’s co-founder, views the acquisition of the provisional VASP license from VARA as an assurance of the company's mission to provide a secure and transparent platform beyond just a regulatory achievement. “As we set our operations in Dubai, we’re not only increasing our presence but also fortifying our intention to remain the preferred platform for trading,” Jansen remarked.
Deribit, founded in 2016, is one of the major cryptocurrency exchanges focusing on derivatives trading. Through the years, it has risen to be among the key crypto derivatives platforms, alongside giants such as Binance and Bybit. As of April 2, it's the fifth-largest derivatives exchange with a daily trade volume of $1.9 billion, as stated by CoinMarketCap.
VARA, established in March 2022, is chiefly responsible for regulating crypto-related activities all over the Emirate of Dubai, enveloping Special Development Zones and Free Zones, but not including the Dubai International Financial Centre. Following the initiation of this regulatory framework, VARA has accorded multiple crypto trading licenses to entities such as Binance and OKX.
Published At
4/2/2024 3:31:24 PM
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