Deribit, a leading cryptocurrency exchange that offers options and futures for Bitcoin (BTC) and other cryptocurrencies, is making a move to Dubai after obtaining regulatory approval from local authorities.
On April 2, Deribit announced that its Dubai subsidiary, Deribit FZE, has been granted a Virtual Asset Service Provider (VASP) license by Dubai’s Virtual Asset Regulatory Authority (VARA). This license permits Deribit to provide cryptocurrency trading services in Dubai, including spot trading and derivative trading such as futures and options.
However, Deribit’s VASP license will only become operational once the company meets all the remaining requirements and fulfills the localization conditions set by VARA. The exchange plans to share its launch plans, terms, and the specific timing for commencing operations under the new licensed entity in the near future.
Once operational, Deribit will cater to institutional and qualified investors in Dubai. Retail clients will still be served by Deribit’s broker affiliate in Panama, which is part of Deribit FZE in Dubai, until further notice.
In addition to securing the license, Deribit will be relocating its global headquarters from Panama to Dubai and appointing its former chief commercial officer, Luuk Strijers, as the new CEO.
Deribit co-founder John Jansen emphasized that obtaining the conditional VASP license is not just a regulatory milestone but also a demonstration of the company’s dedication to providing a secure and transparent trading platform. Jansen stated that as they establish their operations in Dubai, they are expanding their reach and reaffirming their commitment to being the preferred trading platform.
Deribit is a significant player in the cryptocurrency exchange market, specializing in derivatives trading. It was founded in 2016 and has become one of the largest platforms for crypto derivatives alongside industry giants like Binance and Bybit. As of April 2, Deribit is ranked as the fifth-largest derivatives exchange, with a daily trading volume of $1.9 billion, according to CoinMarketCap.
VARA, established in March 2022, is the primary regulatory authority overseeing crypto-related activities in Dubai, covering all zones except for the Dubai International Financial Centre. Since its launch, VARA has issued multiple crypto trading licenses to companies such as Binance and OKX.