Deribit, a leading cryptocurrency exchange that offers options and futures for Bitcoin (BTC) and other cryptocurrencies, is making a move to Dubai after receiving regulatory approval from local authorities.
The Dubai branch of Deribit, called Deribit FZE, announced on April 2 that it has been granted a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). This license allows Deribit to offer a range of crypto trading services in Dubai, including spot trading and trading of crypto derivatives like futures and options.
However, before Deribit can fully operate under the new license, it must meet certain conditions and comply with localization requirements set by VARA. Once these requirements are met, the exchange will reveal its launch plans and begin operating as a licensed entity.
Deribit intends to serve institutional and qualified investors in Dubai once it becomes operational. In the meantime, the exchange will continue to serve its retail clients through its broker affiliate in Panama, which is a part of Deribit FZE.
In addition to obtaining the license, Deribit will be relocating its global headquarters from Panama to Dubai. The company has appointed its former chief commercial officer, Luuk Strijers, as the new CEO.
Deribit co-founder John Jansen emphasized that the VASP license from VARA is more than just a regulatory milestone. He sees it as a testament to the company’s commitment to providing a secure and transparent trading platform. Jansen stated that as Deribit establishes its operations in Dubai, it aims to expand its reach and remain the preferred choice for traders.
Deribit is a significant player in the cryptocurrency market, specializing in derivatives trading. Since its founding in 2016, it has become one of the largest platforms for crypto derivatives, alongside exchanges like Binance and Bybit. As of April 2, Deribit is the fifth-largest derivatives exchange, with a daily trading volume of $1.9 billion, according to CoinMarketCap.
VARA, established in March 2022, serves as the primary regulatory authority for crypto-related activities in Dubai, including Special Development Zones and Free Zones. However, it does not have jurisdiction over the Dubai International Financial Centre. Since its inception, VARA has issued multiple crypto trading licenses to companies like Binance and OKX.
In conclusion, Deribit’s relocation to Dubai and the acquisition of the VASP license from VARA mark significant milestones for the exchange. It demonstrates the company’s commitment to providing secure and transparent trading services and its desire to expand its operations in the Middle East.