In the following quarters, the crypto currency futures and options platform Deribit, which is now headquartered in Panama City, plans to move its headquarters to Dubai. Dubai is more accommodating to the crypto currency industry.
According to a report (1) published by Bloomberg, Deribit plans to apply for a Full Market Product license to Dubai's Virtual Assets Regulatory Authority as soon as the authority updates the regulatory procedures it intends to implement.
According to David Dohmen, chief legal compliance & regulatory officer at Deribit, the firm is only a few quarters away from having its goods governed by a crypto-friendly nation. He made this observation in light of the previous point.
In addition, the failure of FTX and Alameda has increased the urgency with which cryptocurrency exchanges must get registration to keep their worldwide clientele. In addition, the volume of cryptocurrency trading substantially decreased after the saga involving FTX, and many traders moved their business to decentralized exchanges (DEXs) and non-custodial wallets.
Dohmen stated, "we've had a lot of customers who wanted us that they would want to trade on a cryptocurrency exchange that is genuinely regulated."
We are not subject to any regulations in Panama. Additionally, we could see the direction in which the regulation winds were flowing, and we observed that there was a movement for regulation all over the world.
The sun-kissed nation of Dubai has made substantial legislative headway in molding the cryptocurrency business, and Deribit, which has its headquarters in Dubai, is optimistic about the industry's future.
According to Dohmen, "we thought that the entire regulatory environment was more specialized to crypto than other jurisdictions. It has more adaptability. The administration and the regulatory body are optimistic about the future of crypto currency as a product.
Deribit Hops to Expand its Business from Dubai
Since its official launch in June 2016, Deribi has experienced explosive growth, expanding its product offering to include perpetual, futures, or options contracts on various digital assets, including Bitcoin and Ethereum.
Deribit plans to expand its market to include European and Asian nations after it has established a foothold in the nation located in the Middle East. In addition, Deribit is still the market leader in selling cash-settled cryptocurrency options in the European model.
Entry into the Dubai economy will increase competition within the sector since other top exchanges, such as Binance, have already established a presence there and have been regulated by the appropriate agencies.
As per Luuk Strijers, Deribit's chief commercial officer, the company is now also attempting to hire a well-known auditor. According to reports, the Deribit office in Dubai will feature about ten staff, a mix of core personnel and local hires. On the other hand, a few of the Dubai workers will maintain their remote working arrangements from Panama.
According to a statement made by a representative of the firm, Deribit was able to record the successful year 2022 despite being harmed by the collapse of the Three Arrows Capital. In large part, the expansion may be credited to institutional investors who, despite the continuation of the bad market, continue to increase their exposure to crypto currency.