Crypto Derivatives Trading Platform to Flee from EU’s Tight Regulatory Demands


Deribit, a cryptocurrency derivatives exchange based in the Netherlands, has decided to transfer all existing operations to its Panama-based subsidiary. According to its January 9 press release, the surprising move is caused by the European Union’s updated crypto regulations.

One of the regulatory concerns cited by Deribit in the announcement pertains to 5AMLD (5th Anti-Money Laundering Directive, the new requirements implemented by the EU that oblige customers to provide significant personal information. Clients who would refrain from producing such data wouldn’t be allowed to conduct business with their chosen crypto trading platforms. 

This new guideline, as emphasized in the news release, contradicts Deribit’s vision of the crypto industry. The exchange believes that crypto markets should be spontaneously available to interested participants. Furthermore, Deribit emphasized that such regulations would increase the barrier for entry for most crypto traders, not to mention the additional costs it would incur. 

The rumors about Deribit’s plan to leave the EU for Panama began in October 2019. Finally, the company has confirmed that it is wrapping up operations in the Netherlands. It was also announced that Deribit would delegate existing businesses to DRB Panama Inc. on February 10. 

As part of the company’s upcoming move to a new jurisdiction, Deribit noted that it would also alter its current KYC (know-your-customer) expectations. This move would involve the help of Jumio, a payment and verification firm as well as Chainalysis, a New York-based software company.

According to industry experts, the tightening of EU’s regulatory demands could result in more crypto exchanges leaving the Eurozone. Notably, several Dutch cryptocurrency firms have expressed their confusions regarding the Dutch regulators’ self-guided implementation of the new Anti-Money Laundering Directive.



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