The largest Ether and Bitcoin options exchange, Deribit, is considering a move to Dubai in the 3rd quarter. In case, the regulatory clarification is provided by the city’s authorities. According to a question and answer session with Deribit’s chief legal regulatory and compliance executive David Dohmen. The company has been headquartered in Panama since 2020. Now it is planning to establish a Dubai-based office with a staff of about ten people. Even after the relocation, some workers will remain in Panama. The total number of individuals employed by Deribit and its affiliates, all of whom are headquartered in the Netherlands, is 95. This is double the number of people employed by the firm a year ago.
Deribit Relocates to Dubai Following Competitor FTX’s Bankruptcy
Deribit had withdrawals of 10%-15% after the bankruptcy of the competitor FTX crypto exchange in November. They’ve had a few customers hint that they’d prefer to do business on a licensed crypto exchange. They are uncontrolled in Panama. They also observed a worldwide trend toward increased regulation.
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Dubai, the Middle East’s glistening financial and commercial epicenter, has gone to great lengths to court the world’s greatest corporations by adopting crypto-friendly legislation. Although rules were tightened in several financial areas in 2018, many in the United Arab Emirates hailed virtual assets as a foundation for the country’s continued diversification and growth. The largest cryptocurrency exchange, Binance, has established a presence in the city of Dubai.
Deribit Seeks Complete Market Product License in Dubai and Plans to Expand Licensing to Other Countries
Dohmen also said they found the entire regulatory system to be more crypto-friendly than in other jurisdictions. It’s more malleable. As a product, cryptocurrency is being warmly received by governments and regulators.
Recent failures at several crypto enterprises that had attracted to the United Arab Emirates (UAE) have, however, caused policymakers there to reconsider their stance on the industry. In an effort to reign in the dozens of free zones around the country, the central government imposed more official guidelines this month.
Dohmen added that after Dubai’s Digital Assets Regulatory Agency updates its set of regulations, Deribit would send a proposal and accompanying paperwork for a Complete Market Product license. Dohmen stated that in the coming years, Deribit intends to pursue broker licenses in countries. Further, it includes the United Kingdom, Brazil, and Singapore in an attempt to bring additional customers to the exchange.