As part of the migration, Deribit clients must accept new terms of service and complete a mandatory KYC process before the end of 2024 to avoid restrictions on their accounts.
On Friday, November 29, Deribit, a crypto derivatives exchange, announced that it will fully migrate its operations from Panama to Dubai starting January 1, 2025.
The move comes after the company, known for its extensive digital asset options trading, received a Virtual Assets Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant milestone in its global expansion plans.
Consolidating Operations under VARA’s License
With this move, Deribit will consolidate all its activities into its new Dubai-based entity, Deribit FZE, which will be the sole platform offering all of the exchange’s products. The services include spot trading, perpetuals, futures, options, and all post-trade services.
The company said its decision to move its operations follows the growing demand for regulated and secure crypto platforms, with the UAE rapidly positioning itself as a hub for digital asset innovation.
“We believe Dubai’s forward-thinking regulatory environment offers the perfect foundation for us to expand, ensuring we can meet the evolving needs of our institutional clients.This move strengthens our commitment to delivering best-in-class services while adhering to the highest standards of transparency and compliance,” said Luuk Strijers, CEO of Deribit.
Starting in 2025, Deribit will onboard all institutional and qualified investors directly under the Dubai-regulated platform. Meanwhile, retail clients will continue to be serviced through Deribit’s Panama-based entity, which will operate as a broker member of Deribit FZE.
To ensure smooth integration, all Deribit clients must agree to the updated terms of service by December 31, 2024.
Additionally, customers will need to complete a mandatory Know Your Customer (KYC) process to continue trading. Those who do not complete KYC requirements will have their accounts restricted to “reduce-only” mode, preventing new positions but allowing the closure of existing ones.
Dubai Becomes a Favourite Location for Crypto Exchanges
Meanwhile, Deribit’s migration of activities to Dubai comes amid a growing trend of global crypto firms flocking to the region. The city’s clear regulatory framework and business-friendly environment continue to attract leading crypto exchanges. Major platforms such as Bybit, OKX, and even Ripple have either launched or expanded operations in the UAE, driven by its progressive stance on digital assets.
Dubai’s friendly tax environment has also attracted firms like Kraken, which operates in the UAE under VARA’s supervision. Binance has also been a major player in the region, securing licenses to offer regulated trading services.
The city’s low tax regime and robust regulatory framework make it an ideal location for companies looking to operate with regulatory clarity while tapping into a growing pool of crypto investors in the Middle East and beyond.
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