The top cryptocurrency options exchange in the world, Deribit, announced on Tuesday that Deribit FZE, a division based in Dubai, has received a conditional virtual asset provider (VASP) licence from the relevant regulatory body.
According to a press statement from Deribit, the licence permitting FZE to function as a virtual asset exchange for spot and derivatives trading is not operational until Deribit satisfies all outstanding requirements and local laws set forth by Dubai’s Virtual Asset Regulatory Authority (VARA).
After the licence is put into effect, Deribit will be able to service qualified institutional investors in addition to continuing to serve retail investors through its broker affiliate in Panama.
The exchange also announced Luuk Strijers, who has been the chief commercial officer since 2019, as the new chief executive officer and stated that it plans to move its global headquarters from Panama to Dubai.
“After obtaining ISO and SOC2 certification and appointing non-executive directors, obtaining the full VARA spot and derivatives licence is an important next step in our efforts to raise the overall quality & governance standards of our platform.” Our solid standing in the cryptocurrency options market is a testament to our clients’ faith in us, Strijers said to Said. Almost 85% of all cryptocurrency derivative activity worldwide is handled by Deribit. The platform provides options on bitcoin (BTC), ether (ETH), and solana (SOL), as well as perpetual futures on bitcoin and ether, and futures linked to its bitcoin volatility index, DVOL.
A regulatory framework for cryptocurrency was unveiled by Dubai’s VARA a year ago. It comprised a set of guidelines and mandated that businesses obtain licences in order to lawfully operate in the nation.
In order to do virtual asset business in Dubai, one must possess a VASP licence. White & Case states that the licence needs to be renewed every year after it is issued and has a one-year validity period. Plans, conditions, and the precise date of transition to the new licenced company would be made public soon, the exchange promised.