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Deribit Secures Conditional VASP License from VARA, Relocates HQ to Dubai

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Crypto derivative­s leader Deribit se­cured a conditional Virtual Asset Service­ Provider license from Dubai’s re­gulatory authority, solidifying its global presence within Dubai’s flourishing crypto ecosystem. Dubai’s crypto hub presents opportunities De­ribit aims to leverage through this lice­nsing move.

The conditional lice­nse, acquired on April 2nd, 2024, covers spot and derivatives trading. However, the company re­mains inactive until Deribit mee­ts certain VARA-mandated prere­quisites. This involves finalizing localization processe­s and conforming to continuous regulatory oversight. However, Deribit’s leadership views this as a necessary step for long-term growth.

“Securing the conditional VASP license from VARA is not just a regulatory milestone; it’s a sign of our unwavering commitment to providing a secure, transparent, and innovative platform for our users,” said John Jansen, Deribit Co-Founder.

This sentime­nt resonates with the appointme­nt of Luuk Strijers as the new CEO. Strije­rs, an experience­d professional with nearly two decade­s in the financial sector, possesse­s extensive knowle­dge in product developme­nt and client engageme­nt strategies.

He unde­rscores the vast prospects offe­red by VARA’s progressive re­gulatory framework. Strijers aims to capitalize on De­ribit’s established client trust while­ driving further innovation within the evolving cryptocurre­ncy marketplace, exe­mplifying his forward-thinking approach.

Deribit strengthens its leadership ense­mble by welcoming Dennis Dijkstra, forme­r Chief Executive Office­r of Flow Traders, and industry veteran Wille­m Meijer as Non-Executive­ Directors (NEDs). Their extensive expertise will catalyze Deribit’s strategic navigation towards sustaine­d growth, solidifying its leading marke­t standing.

Dubai Crypto Hub Influences Deribit’s Strategic Move

Dubai eme­rges as a worldwide crypto hub, crucial in Deribit’s strate­gic relocation decision. Established in March 2022, VARA cre­ates a progressive le­gal framework for the Virtual Asset industry. This frame­work safeguards investors, establishe­s global governance standards, and supports a borderle­ss digital economy vision.

By securing operations in Dubai, the company positions itse­lf to capitalize on this rapidly expanding market. The­ city’s rise as a crypto center significantly influe­nces Deribit’s strategic move­. VARA, launched in March 2022, plays a central role in de­veloping a progressive le­gal framework for Virtual Assets.

This framework aims to prote­ct investors, establish international gove­rnance standards, and support a borderless digital e­conomy vision. By initiating its operations in Dubai, Deribit strategically positions itse­lf to benefit from this rapidly growing market.

While De­ribit awaits complete ope­rational clearance under the­ VASP license, they are­ collaboratively finalizing remaining nece­ssities alongside VARA. Soon, details about launch strate­gies, conditions, and the precise­ timeline for their Dubai unve­iling will be shared.

This conditional permit signifie­s a momentous achieveme­nt for Deribit. Propelled by an ade­pt leadership team, robust se­curity measures, and a strategic re­location to Dubai, the company stands poised to ceme­nt its crypto derivatives market dominance­.

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Binance Charts Bold Revival Path for Gopax Amidst Regulatory Tides

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Binance, the world’s largest cryptocurrency trading platform, has reaffirmed its commitment to resurrecting the ailing domestic exchange, Gopax. The Korean exchange finds itself in dire straits with complete capital erosion, and Binance is set to play a pivotal role in its revival.

Binance Rescues Gopax with Loan-to-Equity Conversion

According to a recent report from local news outlet Dailian, Binance is gearing up to convert all Gopax loans paid in the previous year into equity, marking a significant step in the restructuring plan. Steve Kim, Binance’s Asia-Pacific regional director, outlined the ambitious strategy during a roundtable discussion on the ‘2024 Web3 market outlook’ held online on the 30th.

Kim expressed confidence in the plan, stating, “We plan to do it first, and accordingly, the shareholding ratio will increase significantly.” This move positions the exchange to become the second-largest shareholder in Gopax. Kim further detailed that the cryptocurrency giant would later sell these shares to carefully selected partners who align with and comprehend domestic regulatory frameworks.

The initiative comes as Gopax faces hurdles in the aftermath of the liquidity crisis experienced by U.S.-based Genesis Capital, a prominent fund manager. The exchange stepped in, acquiring a substantial 72.26% stake in Gopax in February of the preceding year. The Korean exchange, previously known for its virtual asset deposit management service ‘GoFi,’ has been undergoing significant changes under Binance’s ownership.

However, Gopax’s attempts to report alterations to its virtual asset business have been met with delays from the Financial Services Commission, which cites concerns over Binance’s alleged money laundering risks. Last year, the U.S. Treasury found Binance guilty of money laundering, resulting in a hefty fine of $4.3 billion.

In response to regulatory challenges, the exchange has proposed a comprehensive plan involving the conversion of Gopax loans into equity and subsequent sale to a domestic entity. This strategic move aims to allay apprehensions about money laundering risks and national wealth outflow. As the situation unfolds, City Labs emerges as a potential major stakeholder post-Binance’s divestment.

Despite regulatory skepticism, the exchange remains optimistic that reducing its stake will pave the way for smoother acceptance of Virtual Asset Service Provider (VASP) reporting by regulatory authorities, underscoring the dynamic and complex nature of the ongoing financial maneuvering in the cryptocurrency sphere.

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Ripple Gains VASP Status in Ireland

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Ripple, the blockchain company, has achieved recognition as a virtual asset service provider [VASP] by the Central Bank of Ireland [CBI]. This designation empowers the decentralized platform to offer specific digital asset services within Ireland. Furthermore, Ripple’s Irish subsidiary is poised to extend its services to clients across the European Economic Area once the Markets in Crypto Assets Regulation [MiCA] takes effect by the end of 2024, subject to the acquisition of the requisite licenses.

MiCA is the EU’s attempt at bringing a pan-European regulatory framework for crypto companies. It aims to protect investors who are buying and selling crypto assets like Bitcoin and Ethereum. The rules will allow crypto firms to use one license in one country to operate across all 27 EU member states.

Ripple
Ripple Gains VASP Status in Ireland 2

Eric van Miltenburg, Senior Vice President of Strategic Initiatives, expressed the significance of this development, stating, “The Central Bank of Ireland’s addition of Ripple Markets to its list of registered virtual asset service providers is a significant step forward for our business in the region.”

He emphasized Ireland’s positioning as a supportive jurisdiction for the virtual asset industry, making it an ideal operational base for Ripple within the EU regulatory framework. Miltenburg noted that Ireland’s commitment to providing regulatory clarity contributes to bolstering confidence in the digital assets, payments, and fintech ecosystem.

Having established its Dublin office in 2022, Ripple has redirected its focus beyond the United States due to stricter regulatory measures at home. The company has already initiated partnerships in France and Sweden.

Ripple’s Historic Win

Ripple has been entangled in a fierce legal battle with the U.S. Securities and Exchange Commission [SEC] since December 2020. In July 2023, the firm achieved a partial victory when a judge ruled that it did not violate securities laws by selling XRP to exchanges and enabling retail buyers to invest. However, the judge also determined that Ripple did breach the law when selling tokens directly to institutions.

A noteworthy development occurred in October 2023 when the SEC dropped its securities law violation charges against Ripple executives Brad Garlinghouse and Chris Larsen. This event marked a pivotal moment not just for the crypto firm but also for the entire cryptocurrency industry, showcasing evolving dynamics in the regulatory landscape.

Crypto.com Expands to Dubai: Attains VASP License for Cutting-edge Crypto Services

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Crypto.com, a prominent Singapore-based cryptocurrency exchange, revealed today that its Dubai entity, CRO DAX Middle East FZE, has secured a Virtual Assets Service Provider (VASP) Licence from Dubai’s Virtual Assets Regulatory Authority (VARA).

https://twitter.com/cryptocom/status/1724278894029635778

VARA’s Regulatory Framework: Crypto.com’s Compliance Commitment

According to a November 14 press release, this license, subject to specific conditions and localization requirements outlined by VARA, positions Crypto.com to engage in regulated virtual asset service activities pending operational approval from the regulator.

Upon obtaining operational approval, the VASP Licence will empower the exchange to provide a range of regulated virtual asset services, such as exchange services, broker-dealer services, management and investment services, and lending and borrowing services. These services will be accessible to retail and institutional users through the Crypto.com App and Crypto.com Exchange.

In an effort to be among the first virtual asset exchanges to operationalize its VASP Licence post-VARA’s issuance of specialized regulations in February 2023, Crypto.com underscores its commitment to cross-border risk assurance and compliance with VARA’s robust framework. 

This development follows the company’s acquisition of its MVP Provisional Licence in June 2022 and MVP Preparatory Licence in March 2023. Dubai was declared Crypto.com’s regional hub for the Middle East and Africa in March 2022.

Kris Marszalek, CEO of Crypto.com, expressed enthusiasm about being one of the pioneering crypto exchanges to secure a Virtual Asset Service Provider Licence from VARA, underscoring the company’s dedication to security and compliance. He lauded Dubai’s role as a leading market with effective crypto regulation supportive of adoption and innovation.

Meanwhile, on June 9, Crypto.com declared discontinuing services to institutional clients in the U.S., effective June 21. The decision, attributed to “limited demand” in the current crypto market conditions, does not impact retail investors who can still access the platform, including its CFTC-regulated derivatives trading.

Observers speculate that this move aligns with the growing regulatory scrutiny in the United States, particularly following recent lawsuits by the SEC against major exchanges like Binance and Coinbase for alleged violations of U.S. securities laws. Despite citing market conditions as the primary reason, the company did not rule out the possibility of reopening institutional services.

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Kraken Expands Horizons: Plans U.S. Stock & ETF Trading Services For 2024

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According to a recent report, crypto exchange Kraken is set to expand its services beyond the cryptocurrency market, as it plans to launch U.S.-listed stock and ETF trading services in 2024. It marks a significant move for the company, venturing into traditional financial markets for the first time. 

Kraken, established in 2011, has solidified its reputation as one of the oldest and most respe­cted names in the cryptocurre­ncy industry. Withstanding multiple bear markets, including the­ downturn of 2022 following Bitcoin’s peak at nearly $69,000.

Kraken has successfully obtained the necessary regulatory licenses in the United Kingdom. Currently, the company is active­ly pursuing a broker-dealer license from the U.S. Financial Industry Regulatory Authority.

Recent weeks have seen the exchange in the spotlight for various reasons. Last week, the Australian Securities and Investments Commission (ASIC) initiated legal proceedings against Bit Trade, Kraken’s crypto exchange operator in Australia. 

On a positive note­, Kraken recently obtained authorization from the Central Bank of Ireland to operate as an E-Money Institution (EMI). Additionally, the company is registered with the­ Bank of Spain and is now recognized as a Virtual Asset service provider (VASP), as reported by TronWeekly.

Kraken’s Move Into Traditional Equities

This rece­nt shift towards investing in stocks coincides with a decline­ in the cryptocurrency market, marke­d by lower trading volumes and waning industry appeal.

Kraken’s plan involves offering trading in U.S.-listed stocks and exchange-traded funds. This expansion will be facilitated through a new division called Kraken Securities, initially launching in the U.S. and UK markets. 

While the move diversifies the exchange’s offerings, it also presents challenges as it enters a competitive landscape of zero-commission trading platforms like Robinhood and Public.com.

Eligible Kraken customers will soon have the option to activate the stock trading service, seamlessly integrating with their existing crypto holdings. Additionally, the exchange is working on expanding its prime brokerage services and launching a qualified custodian for institutional clients soon. 

This custodial service will operate independently from the exchange and has a pending application for approval with the state of Wyoming.

While Kraken declined to comment on these developments, its growing market share this year indicates a positive trajectory despite a decline in trading volumes. The exchange’s 3.5% share of global spot trading is the highest since 2018, posing a challenge to market leader Binance, which has faced regulatory scrutiny worldwide in 2023.

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Kraken Secures European Foothold: EMI License In Ireland & VASP Registration In Spain

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Recently, Kraken, a renowned cryptocurrency platform, has received significant authorizations that underline its commitment to expanding its European operations. 

According to an official press release, the exchange has been granted authorization by the Central Bank of Ireland to operate as an E-Money Institution (EMI). Simultaneously, the company has successfully registered with the Bank of Spain as a Virtual Asset Service Provider (VASP).

These authorizations hold great importance in the exchange’s strategy for European growth, coming on the heels of recent developments in Australia. Last week, the Australian Securities and Investments Commission (ASIC) initiated legal proceedings against Bit Trade, Kraken’s crypto exchange operator in Australia. 

As reported by TronWeekly, ASIC alleged that Bit Trade had failed to comply with design and distribution obligations for one of its trading products, specifically the failure to make a target market determination before offering it to Australian customers.

The EMI license, granted to Kraken’s subsidiary in Ireland, allows the platform to expand its Euro (EUR) fiat services in collaboration with European banks, serving clients across the 27 European Union (EU) member states and European Economic Area (EEA) countries.

In Spain, Kraken’s new VASP registration permits it to offer cryptocurrency exchange and custodial wallet services to Spanish residents, following similar registrations in Ireland and Italy. These licenses signify the exchange’s unwavering commitment to adhering to regulatory standards and expanding its European presence.

Kraken Regulatory Compliance & European Expansion 

Curtis Ting, Kraken’s Vice President of Global Operations, expressed his enthusiasm for these developments, emphasizing the favorable regulatory environment in Europe. He highlighted the company’s dedication to fostering crypto adoption and investment in improving services across the continent. 

Over the­ past year, the exchange­ has introduced several ne­w features. These­ include an NFT marketplace, the­ Kraken Pro advanced trading interface­, and an enhanced user e­xperience for we­b consumers.

Ting emphasized Kraken’s market-leading position in liquidity and volume for EUR crypto pairs, along with its 24/7 customer service and robust security. These strengths and regulatory compliance position Kraken as an attractive choice for future clients in Europe.

However, the company remains committed to ongoing investments in its European business, working towards advancing crypto adoption in the region in the years to come.

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Binance’s Farewell to the Netherlands: Dutch Users Left with Limited Options

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Binance, one of the world’s largest cryptocurrency exchanges, has made a significant decision that has sent an unexpected surprise through the Dutch market. The company recently announced that it will be bidding farewell to its Dutch users. 

As of July 17, 2023, Binance will no longer accept new users residing in the Netherlands. On the other hand, existing Dutch resident users will only be able to withdraw their assets from the platform.

Binance’s Compliance Efforts & Regulatory Challenges

This move comes after the Dutch Central Bank (DNB) imposed a hefty administrative fine of €3,325,000 on Binance in April 2022. The fine was levied due to Binance’s failure to register with the DNB, a requirement for providing crypto services in the Netherlands.

In an official announcement titled “Notice on Changes of Services in the Netherlands,” Binance expressed regret regarding the decision. The company stated that it had been undergoing a registration application process with the Dutch regulator as a virtual asset service provider (VASP). 

However, despite their efforts to comply with Dutch regulations and explore alternative avenues, Binance has been unable to secure the necessary registration in the Netherlands.

Binance emphasized its commitment to regulatory compliance by highlighting its adherence to EU anti-money laundering and anti-terrorism financing standards. 

The company has already obtained registrations in various other EU countries, including France, Italy, Spain, Poland, Sweden, and Lithuania. Furthermore, the exchange aims to ensure full compliance with the new EU crypto-asset rules, known as MiCAR.

Existing Dutch users will receive detailed information via email regarding the impact on their accounts and the necessary steps they need to take. 

However, the exchange expressed disappointment at this turn of events but reassured its users of its dedication to engaging constructively and transparently with Dutch regulators.

This sudden departure from the Dutch market marks a significant setback for the leading exchange, as it has been a popular choice among crypto enthusiasts in the Netherlands. 

Nevertheless, the announcement has many people speculating about the country’s future crypto legislation and its possible effects on other active exchanges. How this event will change the Dutch crypto scene will only become apparent with time.

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