European Union has enounced its intentions to tighten regulations on cryptocurrencies, crypto derivatives exchange. As a result, Deribit announces its departure for Panama. The current Netherlands-based platform will in other words officially delegate into its daughter company, DRB Panama, on February 10.
Open client positions, holdings, wallets, and other system settings will, therefore, be transferred between the former and future branches. However, the hardware servers are remaining the same. And they will move to London, and all community groups and notifications will remain.
The EU required the company to produce significant personal data to participate in the platform, which it urged against. The company said crypto markets should be freely available to most, and the regulations could cost too much.
Once the company transfers to Panama, a statement claims it could offer easily accessible trading platforms at low costs. Moreover, if they continue residing in the Netherlands, regulations will demand extensive information from current and future customers.
Launched in June 2016, Deribit offers 100x leverage for cryptocurrency derivatives exchange. The service prides itself on creating a fully liquid marketplace with the same standards as traditional derivative markets.
What’s Deribit Has in Store
To prevent illegal activities in the platform while keeping investors’ freedom intact, Deribit plans to expand its KYC requirements. Furthermore, this will take effect the same day the company plans to transfer.
The agency expressed plans to use Jumio as the verification and payment mediator. Chainalysis will also get involved in the process.
Current clients will register as Level 0 clients. Which shifts into Level 1 once meeting these requirements.
Despite its move to Panama, US citizens still cannot use their services.
Deribit remains as the only exchange that offers European style cash-settled crypto options, setting the standard for the industry. It’s among the top exchanges providing crypto future and perpetual contract trading.