In a strategic move aimed at broadening its global footprint, Deribit, the leading cryptocurrency options exchange, has secured a conditional Virtual Asset Service Provider (VASP) license for its Dubai-based entity, Deribit FZE. This milestone is part of the exchange’s broader initiative to transition its global headquarters from Panama to Dubai, underscoring its commitment to enhancing the quality and governance standards of its platform.
A Strategic Leap Forward
The conditional VASP license, granted by Dubai’s Virtual Asset Regulatory Authority (VARA), marks a pivotal step for Deribit FZE, positioning it to eventually offer a full spectrum of virtual asset exchange services, including spot and derivatives trading. However, the license will remain nonoperational until Deribit meets all the requisite conditions and complies with VARA’s local requirements.
Serving a Diverse Investor Base
Once operational, the license will enable Deribit to cater to institutional and qualified investors from its Dubai base, while its Panama-based broker affiliate will continue serving retail investors. This dual approach reflects Deribit’s strategy to diversify its investor base and solidify its presence in the global cryptocurrency market.
Leadership and Quality Enhancement
Amidst these developments, Deribit has announced the appointment of Luuk Strijers as its new Chief Executive Officer. Strijers, who previously served as the Chief Commercial Officer since 2019, will spearhead the exchange’s efforts to obtain the full VARA spot and derivatives license. This initiative is part of Deribit’s commitment to raising its platform’s standards, following its achievements in obtaining ISO and SOC2 certification and appointing non-executive directors.
Dominating the Crypto Derivatives Market
Deribit’s dominance in the crypto derivatives market is undisputed, with the platform accounting for over 85% of global crypto derivative activity. The exchange offers a wide range of products, including options on Bitcoin (BTC), Ether (ETH), and Solana (SOL), along with Bitcoin and Ether perpetual futures and futures tied to its Bitcoin volatility index, DVOL.
Regulatory Compliance and Future Plans
With Dubai’s VARA unveiling a comprehensive regulatory framework for cryptocurrencies last year, obtaining a VASP license has become a crucial requirement for legally operating in the UAE. Deribit’s conditional license is valid for one year and requires annual renewal. The exchange is poised to announce further plans, terms, and timelines for commencing operations under the newly licensed entity, signaling a new chapter in its global expansion strategy.
