By Michael Scott
Deribit crypto exchange has disclosed plans to relocate its headquarters to Dubai. Deribit aims at sustaining its market dominance in the crypto space. Currently, plans to comply with the Dubai licensing board have started.
The QCP Capital owned-Deribit is currently operating in Panama and Amsterdam and has revealed plans to move its main offices to Dubai. The Deribit decision comes days after the regulators in the UAE developed stricter crypto regulations.
VARA License Requirement
According to a report by UAE Cabinet Minister Omar Sultan Al Olama on January 19, all crypto providers must comply with Virtual Asset Regulatory Authority (VARA) requirements to acquire the necessary license.
The VARA licensing process comprises four main stages the crypto firms are required to meet. At the initial stage, the regulators analyze the firm’s suitability to operate in the UAE market.
Following the VARA guidelines, the regulators are obliged to issue the provisional permit
preparatory licenses, Minimum Viable Product operating permits (MVP) and Full Market Product licenses to virtual assets operators.
VARA will launch the Full Market Product (FMP) license once the regulators develop suitable licensing conditions. The FMP permit is crucial to the crypto firm since it allows mass retail consumer transactions.
Why is Deribits Pushing for Dubai Market?
A statement issued by Deribit’s Commercial officer Luuk Strijers confirms that the firm intends to start the process of acquiring a Full Market Product license from the regulators. Strijers argued that obtaining the permit would restore customers’ trust. He restated that the devastated crypto community lost hope after last November’s FTX scandal.
Besides passing the VARA licensing tests, Strijers revealed that Deribit would engage leading audit firms to improve customers’ confidence. He confessed that the crypto exchange would modify the systems to issue proof of reserves data daily.
In addition, Strijers reaffirmed that Deribit would invest in complying with all the requirements to boost customers’ experiences. In 2019, the crypto exchange acquired new customers. Since then, the firm has invested in retaining clients by improving compliance, auditing and user safety.
Strijers announced part of the Deribit management, compliance, HR and customer relation team would operate from the new office.