Deribit launches spot and derivatives trading in the UAE, moving operations to its Dubai-based entity, Deribit FZE, licensed by VARA.
Deribit, the world’s top crypto derivatives exchange, has announced the launch of spot and derivatives trading in the UAE. This move also involves the migration of all trading activities to its Dubai-based entity, Deribit FZE, which is licensed by the Virtual Assets Regulatory Authority (VARA).
Deribit is also changing its strategy and relocating its trading operations to Dubai. Such a change, which has been in preparation for the past year, proves Deribit’s desire to have a safe and innovative approach to regulations. It aims at enhancing services to institutional and qualified investors internationally.
Institutional and qualified investors from around the world began to trade directly on Deribit FZE starting January 1, 2025. The retail clients will continue to engage DRB Panama which is now a broker member of Deribit FZE. Transition to Dubai also makes strategic sense as it positions Deribit for compliance-driven excellence in client service and access to Dubai’s already-developed crypto infrastructure.
Deribit Shifts Open Interest to Dubai Entity Worth $50 Billion
Client transition is also part of this migration. Customers have to agree with new terms of service no later than January 1, 2025. They also need to undergo a mandatory KYC refresh. Those who will not complete the identification process will be limited to trading only in “Reduce Only” option. This mode enables them to square off existing positions but not to open new ones. Open Interest will also transfer to Deribit’s Dubai entity, which currently stands close to USD 50 billion.
Deribit FZE’s CEO Luuk Strijers welcomed the Dubai action and appreciated the city’s ongoing transformation into the world crypto hub. He pointed out that VARA’s regulation policies are conducive to Deribit’s development. The transition is to satisfy the institutional customers’ demand while maintaining the company’s principles of disclosure and regulation.
Deribit aims at moving all its trading flows to its Dubai-based subsidiary. This will provide a unified liquidity pool for spot, perpetuals trading, futures, options, post-trade activities, and all will be regulated by VARA.
This migration will be a significant new step in Deribit’s development. It reestablishes it as a market maker in cryptocurrencies futures. Deribit has four years of audited financials to demonstrate the company’s solvency. The platform is also internationally accredited by ISO 27001 and complies with SOC 2 Type I and Type II requirements. It also provides daily proof of assets and a real-time view of cumulative margin locked. Deribit partners with top custody providers like Copper Clearloop, FalconX, and Fidelity, with more options planned.
