Deribit, a prominent cryptocurrency derivatives platform, is relocating its operations to Dubai following substantial regulatory acceptance in the region. Deribit FZE, the Dubai-based branch of the Deribit group, has been awarded a Virtual Asset Service Provider (VASP) license by the Virtual Asset Regulatory Authority (VARA) in Dubai, as announced by Deribit on April 2.

Once granted full operational privileges, Deribit will cater to institutional and qualified investors in Dubai, offering services such as cryptocurrency trading, including spot and derivatives trading. For the time being, the exchange will continue serving its retail clients through its broker affiliate in Panama, which is part of Deribit FZE in Dubai.

In addition to obtaining the new license, Deribit is relocating its headquarters from Panama to Dubai, with former Chief Commercial Officer Luuk Strijers appointed as the new CEO. Co-founder John Jansen views the acquisition of the VASP license as a testament to the company's commitment to providing a secure and transparent trading platform.

Established in March 2022, VARA oversees all cryptocurrency-related activities in various zones across Dubai, excluding the Dubai International Financial Centre. Since its inception, VARA has issued several crypto trading licenses to entities including Binance and OKX.

Deribit, founded in 2016, has emerged as a significant player in the cryptocurrency derivatives trading landscape alongside well-known platforms like Binance and Bybit. As of April 2, it ranked as the fifth-largest derivatives exchange, with daily trades amounting to $1.9 billion.