Deribit, one of the leading cryptocurrency exchanges that offers options and futures for Bitcoin (BTC), is moving its operations to Dubai after obtaining regulatory approval from local authorities.
The Dubai-based subsidiary of Deribit group, known as Deribit FZE, recently announced that it has been granted a Virtual Asset Service Provider (VASP) license by Dubai’s Virtual Asset Regulatory Authority (VARA). This license enables Deribit to provide crypto trading services in Dubai, including spot trading and crypto derivatives trading such as futures and options.
However, Deribit’s VASP license will not be immediately operational. The company must fulfill all remaining conditions and comply with localization requirements set by VARA. Once these requirements are met, Deribit will reveal its launch plans, terms, and the exact timing for commencing operations under the new licensed entity.
Upon becoming fully operational, Deribit will cater to institutional and qualified investors in Dubai. Meanwhile, the exchange will continue to serve its retail clients through its broker affiliate in Panama, which is part of Deribit FZE in Dubai.
Apart from obtaining the license, Deribit will also be relocating its global headquarters from Panama to Dubai. As part of this transition, the former chief commercial officer, Luuk Strijers, will assume the role of the new CEO.
According to Deribit co-founder John Jansen, the conditional VASP license from VARA represents more than just a regulatory milestone. It demonstrates the company’s commitment to providing a secure and transparent trading platform. Jansen emphasized that by establishing operations in Dubai, Deribit aims to expand its reach and maintain its position as the preferred trading platform.
Cointelegraph reached out to Deribit for a comment on the VARA license, but no response was received at the time of publication.
Deribit is a prominent cryptocurrency exchange specializing in derivatives trading. Since its establishment in 2016, it has become one of the largest platforms for crypto derivatives, alongside industry giants like Binance and Bybit. As of April 2, Deribit is ranked as 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 regulator overseeing crypto-related activities in all areas of Dubai, except for the Dubai International Financial Centre. Since its launch, VARA has issued multiple crypto trading licenses to companies like Binance and OKX.
In conclusion, Deribit’s relocation to Dubai and its acquisition of the VASP license from VARA signify a significant step for the exchange in terms of regulatory compliance and its commitment to providing a secure trading environment. By establishing operations in Dubai, Deribit aims to expand its services and maintain its position as a top player in the cryptocurrency derivatives market.