• Deribit, a cryptocurrency futures and options exchange based in Panama City, is planning to relocate its headquarters to Dubai.
• The move is driven by the need to become a more crypto-friendly nation and to apply for a Full Market Product license to Dubai’s Virtual Assets Regulatory Authority.
• The collapse of FTX and Alameda has accelerated the need for crypto exchanges to get registered to retain global customers.
Deribit, a cryptocurrency futures and options exchange based in Panama City, is planning to relocate its headquarters to Dubai in the coming quarters. The move is driven by the need to become a more crypto-friendly nation and to apply for a Full Market Product license to Dubai’s Virtual Assets Regulatory Authority.
Officially launched in June 2016, Deribit has grown exponentially to offer perpetual, futures, and options contracts on Bitcoin, Ethereum, and many other digital assets. 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.
The collapse of FTX and Alameda has further accelerated the need for crypto exchanges to get registered to retain global customers. In particular, the 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 have asked us to move away from Panama,” Dohmen said.
Although the move to Dubai is still in its early stages, Deribit is looking to gain access to the city’s established infrastructure, which could help the firm in its quest to become a global player in the cryptocurrency trading sector. Moreover, Dubai’s commitment to digital economy and its supportive regulatory environment could further help Deribit become one of the most sought-after crypto exchanges.
In conclusion, the move to Dubai is a strategic decision for Deribit, as it provides the opportunity to become a more crypto-friendly nation and to apply for a Full Market Product license. Moreover, the city’s supportive regulatory environment could help Deribit become one of the most sought-after crypto exchanges and gain access to the city’s established infrastructure.