Deribit cryptocurrency derivatives exchange platform announced on Jan. 9 that it is leaving the European Union for Panama in order to avoid the mandates of the coming fifth Anti-Money Laundering Directive (5AMLD). As of Feb. 10, 2020, the exchange platform will be run by a Panama-based subsidiary of the Dutch Deribit B.V.
Moreover, the Netherlands based Deribit B.V. will delegate its mandates to its daughter company; DRB Panama early February while also updating its Know Your Customer (KYC) requirements. According to the firm’s statement, it has decided to transfer to Panama amid the likelihood of tighter regulatory demands across the EU.
The new regulatory requirements labelled 5AMLD will require Deribit users to produce significant personal information in order to participate in the exchange. The firm’s statement read:
“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.”
Updated Terms and KYC
Furthermore, Deribit plans to use verifications and payment firm Jumio as well as Chainalysis to update its KYC requirements. As per the statement, the firm will host multi-customer activity levels on the platform. It will be based on certain KYC elements.
In conclusion, the European Union is expected to comply with the new requirements of 5AMLD. However, this still frees up individual countries to move above and beyond if so inclined. As for the Netherlands, Deribit claimed it expects the country to “adopt a very strict implementation of the EU regulations.”