Deribit Plans To Secure A License In Dubai

Key Points:

  • Deribit is considering relocating to Dubai as local officials start to make their policies on cryptocurrencies clear.
  • The Panamanian exchange also has development plans for Brazil, the United Kingdom, and Singapore.
According to Bloomberg, Deribit, the largest Bitcoin and Ether options exchange in the world, is preparing to go to Dubai as early as the third quarter, pending further clarification of legislation from the crypto-friendly emirate’s authorities.
Deribit Plans To Secure A License In Dubai

According to Deribit Chief Legal, Compliance and Regulatory Officer David Dohmen, the exchange, which has had its headquarters in Panama since 2020, intends to create an office in Dubai with a workforce of 10 individuals made up of both new local hires and the company’s current skills. The transfer may happen as soon as this summer.

Some employees’ places of employment will remain in Panama. 95 individuals are presently employed worldwide by the main business of Deribit, a Dutch company, and its affiliated subsidiaries, which is approximately twice as many as in 2012.

After the collapse of the now-defunct derivatives exchange FTX, the company made the decision to apply for a license in Dubai as part of a larger effort to boost trust in its exchange. The company also intends to hire one of the top four auditing firms and to regularly provide pictures of its evidence of reserves.

“We’ve had a number of clients who basically intimated to us that they would like to trade on a crypto exchange that’s actually regulated. In Panama, we are not regulated. Also we also saw where the regulatory winds were blowing, and there was a drive toward regulation across the globe,” Dohmen said.

Deribit Plans To Secure A License In Dubai

According to Luuk Strijers, the chief commercial officer of Deribit, the company is currently attempting to hire a reputable auditor. Despite being damaged by the failure of the hedge fund Three Arrows Capital, the company was profitable in 2022, he claimed.

In order to attract additional clients to the exchange, Deribit plans to get broker licenses in nations including the UK, Brazil, and Singapore in the coming years, according to Dohmen.

For cryptocurrency companies looking for friendlier treatment from authorities during the market collapse, Dubai has positioned itself as a forward-thinking center. The emirate has awarded licenses to several cryptocurrency exchanges, including Binance, Bybit, and Komainu.

As it struggles to recover from a recession in the housing market that has hurt its renowned real estate industry, the construction-focused city has been working to draw more cryptocurrency firms. The emirate introduced a metaverse program during the summer with the goal of bringing 40,000 virtual employees and more than 1,000 blockchain and metaverse companies to the city by 2030.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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