Deribit to Migrate Operations to Dubai Starting January 2025
Key Highlights:
- Deribit will officially shift all operations to its Dubai-based entity, Deribit FZE, from January 2025.
- The move follows the receipt of a Virtual Assets Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).
- Institutional clients will be onboarded directly under Deribit FZE, while all users must accept updated terms and complete KYC by December 31, 2024, to avoid account restrictions.
On November 29, 2024, Deribit, a leading crypto derivatives exchange, announced plans to migrate its operations from Panama to Dubai. This strategic move, effective January 1, 2025, aligns with the company’s vision to enhance its services under Dubai’s advanced regulatory framework.
Transitioning Under VARA’s Regulatory Framework
Having secured a VASP license in April, Deribit will consolidate all its operations under its new Dubai-based entity, Deribit FZE. This entity will oversee the exchange’s full suite of offerings, including spot trading, perpetuals, futures, options, and post-trade services.
According to Deribit’s CEO, Luuk Strijers, this transition reflects the company’s commitment to operating within a secure and transparent regulatory framework. “Dubai’s progressive regulatory environment provides the ideal platform for us to expand and meet the evolving needs of institutional clients. This move reinforces our dedication to delivering world-class services while adhering to the highest compliance standards,” said Strijers.
Key Changes for Clients
Starting in 2025, institutional and qualified investors will be serviced directly through Deribit FZE, while retail clients will continue under the Panama-based entity, which will act as a broker member of Deribit FZE.
To ensure a seamless transition, all users must:
- Accept the updated terms of service by December 31, 2024.
- Complete a mandatory Know Your Customer (KYC) process to maintain full access to trading services.
Accounts failing to meet these requirements will be limited to “reduce-only” mode, allowing users to close existing positions but preventing new trades.
Dubai: A Growing Hub for Crypto Innovation
Deribit’s decision to relocate to Dubai highlights the city’s growing reputation as a global hub for digital assets. With a business-friendly environment, a clear regulatory framework, and a low-tax regime, Dubai has become a magnet for major crypto exchanges, including Bybit, OKX, Binance, and Ripple.
The UAE’s proactive approach to digital assets has positioned the region as a leader in fostering innovation and attracting top players in the crypto industry. Deribit’s migration underscores this trend, marking another milestone in Dubai’s rise as a global center for blockchain and cryptocurrency.
This move not only reinforces Deribit’s global expansion strategy but also sets the stage for further growth within the Middle East’s booming crypto market.