Dubai Welcomes Crypto Derivatives Exchange Deribit With License

Deribit, a powerhouse in the realm of crypto derivatives trading, has achieved a milestone by obtaining a conditional license from Dubai’s Virtual Asset Regulatory Authority.

This achievement signifies a pivotal advancement in their quest to establish a strong presence within the rapidly expanding crypto landscape of the Middle East.

The timing of this accomplishment aligns with Deribit’s strategic decision to shift its global headquarters to Dubai, allowing the exchange to tap into the region’s thriving crypto ecosystem.

Crypto Exchange Deribit Sets Up Shop In The UAE

Concurrently, the appointment of Luuk Strijers, previously serving as the Chief Commercial Officer, to the role of CEO further underscores Deribit’s efforts to charting new avenues of growth within this dynamic industry.

The conditional Virtual Asset Service Provider (VASP) license allows Deribit FZE, the Dubai entity of Deribit Group, to offer both spot and derivatives trading.

However, full operation hinges on Deribit fulfilling specific requirements set by VARA. This conditional nature highlights Dubai’s commitment to fostering a secure and regulated crypto ecosystem while remaining open to innovation.

In a statement, Luuk Strijers said:

“VARA’s progressive regulatory framework opens up vast opportunities in the digital asset realm. Our strong position in the crypto options market reflects the trust our clients have in us.”

While Deribit positions itself as a first-mover in the Dubai derivatives market, the initial focus appears to be on institutional and qualified investors. This strategic choice could be due to stricter regulations surrounding retail participation in Dubai’s digital currency market. However, Deribit assures continued support for retail investors through its existing Panama-based affiliate.

Deribit’s move to Dubai is part of a larger trend of major companies seeking a foothold in the region. Dubai’s establishment of VARA in March 2022, the world’s first dedicated crypto regulator, has instilled confidence in the market and streamlined regulations.

Dubai As A Global Crypto Hub

This, coupled with Dubai’s ambition to become a global crypto hub, has attracted established players like Binance, Bybit, and OKX. The city’s upcoming Blockchain Life Forum in April further underscores its commitment to fostering a vibrant crypto community.

Deribit’s entry into Dubai presents exciting possibilities for both the company and the region. The license offers Deribit a gateway to a new and potentially lucrative market, while Dubai benefits from the expertise and established user base a prominent crypto player brings.

However, uncertainties remain regarding the specific conditions attached to the license and how Deribit will manage catering to different investor segments under potentially varying regulatory environments.

As Deribit fulfills the remaining requirements and Dubai’s digital currency regulations continue to take shape, the coming months will be crucial in determining the ultimate success of this strategic move.

Featured image from Ethan Wilkinson/Pexels, chart from TradingView