Crypto traders see the potential for other market platforms to exit after Deribit, the crypto derivatives exchange announced a move to Panama from its EU base in the Netherlands.
Traders Unsurprised by Deribit’s Move to Panama, Expect Further Exits https://t.co/tFkkl4NOTw pic.twitter.com/nwV9rHueLv — Criptomonedasyeconomia (@Economiaenllam1) January 11, 2020
It has been reported that Prince, a trader, Twitter personality and Co-host of the Crypto Street Podcast told in a message:
“This is something they had hinted at in an interview months ago, and it’s something I fully expect we see more of going forward in the crypto space.”
However, Deribit broke the news on January 9, explaining its platform will move to Panama from the Netherlands, owing to stringent EU regulations the Netherlands may soon adopt, known as 5AMLD.
Deribit said in a statement that the move will officially occur on February 10, 2020.
As part of the transition, Deribit announced the upcoming changes to its Know Your Customer (KYC) requirements by adding two tiers of authorization on the platform, based on KYC data that customers provide.
Likewise, Michaël van de Poppe, the trader, also spoke on Deribit and its move to avoid AML5 regulations.
<img src="https://i0.wp.com/www.cryptonewspoint.com/wp-content/uploads/2020/01/1x-1.jpg?fit=1024%2C668&ssl=1" alt="" class="wp-image-8133 lazyload" width="448" height="292" />
van de Poppe said in a message:
“I think it’s the easiest way for them to go further, as they otherwise would get struck in the new regulations in the EU. They are not the only ones.”
It has been analyzed that Deribit’s move comes in the midst of a changing regulatory landscape in the crypto space as the U.S. Securities and Exchange Commission (SEC) tightens its watch.
However, exchanges have begun to take note of these changing tides.
Thus, Prince noted:
“A lot of these derivatives venues and exchanges that tout no KYC requirements have been doing KYC for larger traders for a while now anyways. I fully expect to see more trading venues follow suit going forward.”
Source: blog.deribit.com | cointelegraph.com