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.
Author

Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.





