Deribit to Fully Migrate Operations to Dubai on January 1, 2025
On November 29, Deribit, a crypto derivatives exchange, announced its migration from Panama to Dubai starting January 1, 2025.
This decision follows the acquisition of a Virtual Assets Service Provider (VASP) license from Dubai's Virtual Assets Regulatory Authority (VARA), marking a key step in Deribit's global expansion.
Consolidating Operations under VARA's License
Deribit will consolidate its activities into a new Dubai-based entity, Deribit FZE, which will offer all products including spot trading, perpetuals, futures, options, and post-trade services. The move addresses the increasing demand for regulated crypto platforms, with the UAE establishing itself as a digital asset innovation hub.
CEO Luuk Strijers stated that Dubai's regulatory environment provides a strong foundation for expanding services to institutional clients while ensuring transparency and compliance. Starting in 2025, institutional and qualified investors will be onboarded directly under the Dubai platform, while retail clients will continue to be serviced through the Panama entity as a broker member of Deribit FZE.
All Deribit clients must agree to updated terms by December 31, 2024, and complete a mandatory Know Your Customer (KYC) process to maintain trading capabilities. Non-compliance will result in account restrictions to "reduce-only" mode, allowing the closure of existing positions but preventing new ones.
Dubai Becomes a Favourite Location for Crypto Exchanges
Deribit's relocation aligns with a broader trend of crypto firms moving to Dubai due to its clear regulatory framework and favorable business conditions. Major exchanges like Bybit, OKX, and Ripple have either launched or expanded operations in the UAE, attracted by its progressive approach to digital assets.
Dubai's advantageous tax environment has also drawn companies such as Kraken and Binance, which operate under VARA's supervision and have secured licenses for regulated trading services. The city’s low tax regime and robust regulatory framework make it an attractive location for firms seeking regulatory clarity amid a growing pool of crypto investors in the Middle East and beyond.