Exchange of Crypto Derivatives Leaves EU for Panama, KYC Extends

Exchange of Crypto Derivatives Leaves EU for Panama, KYC Extends

Crypto derivatives exchange Deribit is leaving the European Union for Panama to avoid new AML rules while changing its Know Your Customer (KYC) requirements. Let’s check to Exchange of Crypto Derivatives Leaves EU for Panama, KYC Extends.

Deribit B.V., the current Netherlands-based company responsible for the exchange, will officially delegate the trading platform to its daughter company, DRB Panama Inc. on Feb. 10, 2020, a Jan. 9 statement from Deribit said.

Deribit decided to move to Panama based on the reported probability of tightening regulatory demands in the Netherlands as a result of similar EU-wide demands, the Deribit statement noted.

These requirements, known as 5AMLD, relate to crypto operations and may require substantial personal data from Deribit customers to participate on the platform. The declaration added:

“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.”

As part of the upcoming move to Panama, Deribit’s statement noted a change in its terms and privacy policy.

Deribit also mentioned changes to its current KYC expectations, expressing plans to use Jumio as well as Chainalysis software company in the process. Deribit, based on certain KYC elements, will host multiple levels of customer activity on the exchange according to the statement of the company.

Binance revealed in June 2019 that it would kick off its Malta-based exchange in September from U.S. clients, setting up another network with fewer features for U.S. participants. Exchange giant OKEx is also challenging Malta as its headquarters, as the heavily populated holiday destination has drawn attention from the crypto industry. Malta is also a party to EU AML legislation, which can be a burden on country-based exchanges.

This article has only intended for information purposes. Neither the company nor the author shall liable, directly or indirectly, for any damage or loss caused or alleged to result from or in connection with the use or reliance on any content, goods or services referred to in this article.

Published at Mon, 13 Jan 2020 13:05:08 +0000


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