Deribit will transfer its operations to its entity licensed in Dubai.

On January 1, 2025, Deribit, a platform that specialises in trading cryptocurrency options, will introduce spot and derivatives trading in the United Arab Emirates. All operations will be transferred to the Dubai-based company.It intends to give its Dubai entity USD 50 billion in open interest.

Relocating to Dubai

Deribit FZE made the announcement today (Friday) after moving its headquarters to Dubai and obtaining a licence from the Virtual Assets Regulatory Authority (VARA) of Dubai.

It further explained that all the flows and operations will be centralized in its Dubai business. This means that the company with the VARA license will offer all its products, such as post-trade operations, futures, options, spot, and perpetuals.Deribit CEO Luuk Strijers; photo courtesy of LinkedIn

Deribit CEO Luuk Strijers said, "The city's progressive regulatory environment offers the perfect foundation for Deribit's growth and innovation."

For institutional clients it said that it plans to directly onboard all relevant and institutionals who meet the requirements under the Dubai regulated entity from 2025. But it will still go on to offer retail customer service through the current Panamanian counter that was formerly attached to it, is now a broker member of the Dubai based entity.

KYC shall apply.

Because of the change, all Deribit customers will have to agree to the new terms of service by the end of 2024. He also noted that the know-your-customer (KYC) procedure also has to be passed by all clients; otherwise, their accounts will be restricted to “reduce only” status, which permits the sale of any existing position but the opening of new ones.

Since Dubai set up transparent crypto legislation, the interest of cryptocurrency startups in the UAE has grown. The businesses are further attracted to the nation by its business-friendly atmosphere and reduced corporation taxation. Recently, a number of other cryptocurrency companies, such as Ripple and Binance, have been granted licenses in Dubai.

"Our institutional clients need our regulated trading platform to grow with the crypto industry as it matures and global regulatory requirements change," Strijers continued. "This action demonstrates our commitment to fulfilling these demands while providing our clients with outstanding, superior service and upholding the strictest guidelines for compliance and transparency."

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