Crypto options exchange Deribit are leaving Amsterdam
|The Deribit platform which is currently based in Amsterdam has recently announced it's moving from Europe to Panama due to new AML Directives.
The company have stated:
The Platform will move to Panama, as we wish to continue offering an easily accessible trading platform at very low costs. Currently, Deribit is operating in the Netherlands. However, the Netherlands will most likely adopt a very strict implementation of new EU regulations that also apply to crypto companies (5AMLD). If Deribit falls under these new regulations, this would mean that we have to demand an extensive amount of information from our current and future customers. We believe that crypto markets should be freely available to most, and the new regulations would put too high barriers for the majority of traders, both – regulatory and cost-wise. The implementation of these changes would greatly affect the exchange and its customers. Therefore, we have decided to operate the Platform from Panama. The team and leadership will remain the same, with John Jansen as the CEO.
The whole industry has to deal with these new issues (if based in the EU) and even Libra has come under constant criticism about their plans for their KYC (know your client) and AML (anti-money laundering) plans. It seems that the company could not remain competitive if they passed the costs on to their clients. This move will raise questions about the security of funds in Panama, as the rules may be different to the EU. Especially as CME group and Bakkt plan to have regulated options products from their massive exchanges.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.