By
Chimamanda U. Martha
April 23rd, 2024
The leading crypto derivatives platform Deribit has obtained a conditional VASP license from Dubai’s VARA and is relocating its HQ to Dubai. Luuk Strijers steps in as CEO to enhance global operations.
Deribit, the leading crypto derivatives trading platform, has secured a provisional Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA) on April 2nd, 2024. This move shows Deribit’s intention to work under a structured system, but for now, the platform is non-operational because it has not yet met all the other conditions set by VARA.
Hong Kong institution GF Securities this year released the first Commercial Paper tokenized security applicable to local laws, issued on Ethereum. The Hong Kong SFC recently stated that security token issuance and RWA investment may be open to retail investors.…
— Wu Blockchain (@WuBlockchain) April 2, 2024
The approval comes with the shift of Deribit’s worldwide headquarters to Dubai and the appointment of a new CEO, Luuk Strijers. With extensive expertise in product development and client relations, Strijers intends to capitalize on VARA’s forward-thinking regulatory landscape. This strategic move aims to solidify Deribit’s position as a leading force in the cryptocurrency options market.
Deribit’s Institutional Expansion & Regulatory Commitment
As the conditional license facilitates Deribit’s service to institutional and qualified investors in Dubai, its existing retail client base will continue to receive services through its Panamanian broker affiliate. This dual strategy allows Deribit to enter both regulated and unregulated markets, strategically expanding its global reach and presence.
Furthermore, Deribit has appointed the seasoned industry veterans Dennis Dijkstra and Willem Meijer as Non-Executive Directors in a bid to strengthen Deribit’s leadership team. They will play a key role in shaping the company’s long-term growth strategy and maintaining its position as a profitable market leader.
John Jansen, the Co-founder of Deribit, highlights the significance of obtaining a conditional VASP license:
“Securing the conditional VASP license from VARA is not just a regulatory milestone; it’s a sign of our unwavering commitment to providing a secure, transparent, and innovative platform for our users.”
Deribit acknowledges the increasing necessity for faith and transparency in the cryptocurrency sector. The company intends to improve the way it operates by accepting regulations that reduce the space between traditional finance and modern cryptocurrencies.
Deribit’s Path to Dubai’s Crypto Hub
Dubai’s emergence as a global cryptocurrency hub significantly influenced Deribit’s strategic relocation. The Virtual Assets Regulatory Authority, established in March 2022, plays a pivotal role in crafting a progressive legal framework for the virtual asset industry.
This framework aims to protect investors, establish international governance standards, and support the vision of a borderless digital economy. By anchoring its operations in Dubai, Deribit strategically positions itself to capitalize on this rapidly expanding market.
Deribit is diligently collaborating with VARA, the regulatory authority, to complete the remaining requirement as the company awaits full operational clearance under the VASP license. In due course, they will reveal comprehensive details pertaining to their launch strategy, terms, and the precise timeline for their official debut in Dubai.
This conditional license marks a significant milestone for Deribit. With its robust leadership team, stringent security protocols, and strategic relocation to Dubai, the company is well-positioned to solidify its dominance in the crypto derivatives market.