Crypto Derivatives Firm Deribit Entrusted Panama Subsidiary to Run Trading Platform

By Tracy Hannes | January 11, 2020

Crypto derivatives exchange Deribit is reportedly set to release itself from the EU for Panama, in an effort to steer clear from new AML laws, while making amendments to its Know Your Customer (KYC) requirements. 

Deribit B.V – the Netherland-headquartered firm in charge of handling the Deribit.com exchange – will officially entrust its subsidiary DRB Panama Inc. – in operating the platform, starting February 10, 2020. 

The underlying reason that led to the reshuffle in running the platform is the possibility of tightened regulatory demands in the country, as a consequent deprivation recorded throughout the EU, the Deribit statement claimed. 

These requirements – commonly perceived as 5AMLD – are applied to crypto-related businesses, which potential requests Deribit clients to provide a considerable amount of personal information, in order to gain access to the platform. 

“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.”

Deribit’s statement has shown an amendment in the firm’s terms and privacy policy, as part of the plan to shift operation duties to daughter company in Panama. 

Deribit also notified a few changes to its existing KYC expectations, as it is taking into consideration employing verification and payment firm Jumio, and software business Chainalysis in the process. Deribit will support numerous client activity levels on the exchange, based on some specific KYC elements, the firm noted.

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