Deribit to move platform to Panama in response to 5AMLD

Crypto derivatives platform Deribit announced it is leaving the Netherlands to avoid the mandates of the coming Fifth Anti-Money Laundering Directive (5AMLD). The platform will be run by a Panama-based subsidiary of the Dutch Deribit B.V. as of February 10, 2020.

5AMLD regulations take effect on January 10, with European countries directed to mandate the implementation of know-your-customer measures for crypto companies. Crypto firms will also be directed to register with local authorities and obtain information about the source of funds. 

European nations are expected to comply with the baseline measures of 5AMLD, but this still frees up individual nations to go above and beyond if so inclined. As for the Netherlands, Deribit said it expects the country to "adopt a very strict implementation of the EU regulations."


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Some crypto firms closed down in response, citing issues of customer privacy. Deribit, on the other hand, is moving shop. In February, much of the user experience will remain the same, but the servers will be moved to London, and all "client positions, holdings, equity, trade history, fees, rate limits, wallets, portfolio margin arrangements and other systems" will be transferred from the Dutch Deribit B.V. to the Panamanian subsidiary.  

"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," said the company in a statement.

However, some have said that costs of compliance likely wouldn't be that high.  Still, Deribit plans to expand its KYC requirements on February 10; the firm stated on Twitter that KYC would be mandatory for users that require more than one bitcoin in withdrawals over a 24 hour period.

Residents of the United States are still not able to use the platform despite the move to Panama.

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.