Crypto exchange Deribit leaves Europe because of upcoming regulations.

Netherland-based crypto derivatives exchange has announced to relocate its business to Panama because of upcoming EU regulations. The upcoming AML regulations based on FATF guidelines will require crypto companies to collect more data from their customers.

In an official announcement, crypto derivatives exchange Deribit revealed that they will be relocating their offices from the Netherlands to Panama starting 10th February 2020. Deribit is not the only exchange that made such a decision. Earlier three crypto-related businesses shut down their businesses as they did not want to collect data from their customers.

 

EU regulations are getting strict for the crypto industry.

Upcoming regulations dubbed a 5AMLD will require crypto companies to collect more personal data from customers before providing any services. These upcoming Anti-Money Laundering (AML) regulations are based on the FATF guidelines. Deribit exchange announced to delegate trading services to its subsidiary company DRB Panama Inc.

 

Several crypto companies have shut down because of upcoming EU regulations.

Crypto companies, including Chopcoin, Sipmlecoin, and Bottlepay, announced to shut down their businesses in Europe as they didn’t want to comply with the upcoming AML requirements. We might expect exchanges like Binance and OKEx to pull out from Europe any time soon. Crypto payment startup Bottlepay that raised $2 million in a seed funding round in September announced to close down just three months after that. The fifth anti-money laundering law is being implemented to prevent terror financing and to improve safeguards for financial transactions to and from high-risk countries.

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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