Deribit Ditches the Netherlands: Embracing KYC Compliance in Panama

Why Did Deribit Hit the Road?

In a move that could put Thelma and Louise to shame, cryptocurrency exchange Deribit is packing its bags and relocating from the Netherlands to Panama. All this is because of the new Anti-Money Laundering Directive (5AMLD) that came into effect on January 10, 2020. Apparently, Europe’s tightening grip on crypto regulations was too much for Deribit, which has raised its hands and declared, \\”No thanks, we’ll find a beach instead!\\”

Pumping the Brakes on 5AMLD

Despite being enforced, 5AMLD is undergoing a rather slow adoption in the Netherlands. Deribit made it clear that they didn’t want to stick around in a land of bureaucratic uncertainty. \\”Due to the ambiguity of the 5AMLD implementation process, it is not known how the new regulation will affect Deribit,\\” they stated, as they looked for sunnier shores.

New Home, New Rules

Panama is expecting Deribit with open arms, but with that sunshine comes new policies. As of February 10, 2020, the operational control will transition from the Dutch company to DRB Panama. Clients will need to adapt too, as Deribit is ushering in a new era of Know Your Customer (KYC) policies with the addition of two tiers — Level 0 and Level 1.

• Level 0: Limited to withdrawals of 1 Bitcoin or 50 ether per day, requiring basic data like name, email, and date of birth.
• Level 1: No withdrawal limits, but you’ll need to present your passport and documents proving your status.

Keeping the Crypto Clean

With great power comes great responsibility—or so Deribit hopes! In their relentless pursuit of crypto-compliance, Deribit is ready to promptly shut down accounts with false information, ensuring no one’s sneaky shenanigans go undetected. How responsible of them, right?

“We are teaming up with Chainalysis to up our game in detecting suspicious transactions,” said a Deribit spokesperson. “Because who doesn’t love a good watchdog?!”

Playing Nice with New Regulations

With a wave of similar adjustments sweeping through the industry, Deribit isn’t charting unknown territory. Others, like Bottle Pay, were not so lucky and had to close shop. But on the flip side, companies such as CEX.IO have declared themselves fully compliant since 2014. So, which ship will you sail on in this new crypto seas?