Derivatives exchange Deribit reportedly secured a VARA license recently as per a new Cointelegraph article. Following the license, the firm announced that it is shifting its headquarters to Dubai.
The platform is one of the largest derivatives exchanges in the world that offers options and futures contracts for cryptocurrencies such as Bitcoin.
As per the article, Deribit is planning to move its HQ to Dubai after becoming a licensed entity in the region. At present, Deribit is operating a subsidiary in the region namely Deribit FZE that has become a virtual asset service provider (VASP) licensed entity in the region.
The license will enable the firm to offer trading services for consumers in Dubai including spot and derivative options such as futures and options.
Deribit VASP license will be non-operational until the firm completes all legal requirements as per VARA regulations. The announcement has noticed that the trading platform is going to announce a detailed launch plan inclusive of terms and timing to start options as a licensed firm in the region.
After establishing operations in the region, Deribit will provide services to institutional and qualified investors in Dubai.
Deribit Exchange to Offer Retail Trading Services in Association with Panama
Deribit management has noted that it will continue to serve the retail consumers in association with its Panama-based brokerage that is also a Deribit FZE member until further notice.
After acquiring a trading license in Deribit the platform is working on shifting its headquarters from Panama to Dubai. Former Chief Commercial Officer of Deribit, Luuk Strijers will assume the position of the new HQ as CEO.
Deribit co-founder John Jansen confirmed that the firm has obtained a conditional VASP license from VARA. As per Jansen, this license is indicative of an important milestone for the business and also serves as a sign of the company’s plan to offer a secure and transparent trading platform.
He noted that the migration to Dubai is not only increasing its global reach but also ensuring that the forum continues to remain as platform of choice.
Deribit is one of the largest derivatives exchanges for cryptocurrency investors. The platform has been operating since 2016 and become one of the largest derivatives alongside behemoths such as Binance and ByBit.
As per 2nd April, Deribit was ranked as 5th largest derivative exchange boasting a $1.9 billion in daily trading volume as per CoinMarketCap.
Dubai’s VARA to Monitor Crypto Trading Activities
VARA is a regulatory agency directed towards monitoring and supervising cryptocurrency trading platforms in the region since 2022. VARA oversees all crypto-based activities within the Emirates of Dubai inclusive of Special Development Zones and Trade Free Zones. The only region it excludes is the International Financial Center of Dubai.
Since launching a regulatory framework in Dubai, VARA has issued multiple crypto trading licenses to various service providers such as Binance and OKX. Another Cointelegraph article indicates that VARA CEO Matthew White is taking a new approach to empower the crypto startups as a way to foster innovations.
Speaking at the Paris Blockchain Week, White noted that the crypto landscape in Dubai is undergoing a transformative phase. However, he retained that small crypto firms are bearing the burden of hefty regulations and claimed that he is on a mission to change the narrative.
On this account, he intends to lower the compliance costs that serve as an obstacle for small crypto firms.
VARA Regulators to Harbor Cryptocurrency Innovation in Dubai
Speaking on the matter, the CEO noted that crypto regulations are still in the developing process and he is working on ways to bring more improvements. He stated that one such regulatory amendment is easing financial constraints for small crypto entities.
He exclaimed that the licensing process at VARA is a costly process and various firms have stayed out of the competition. To resolve this important issue, White shared various solutions such as allowing large participants to host newer entries.
This structure will cut down costs and grant them access to greater resources at the same time. He noted that compliance expenses stem from massive players and allow smaller entities to participate as regulated firms.
