Panama move from Deribit: Farewell EU of further exchanges?

The Dutch stock exchange is pulling the rip cord: The operator of the platform evades the strict EU guidelines by moving to Panama.


Stock market reacts to stricter rules in the EU

The small state of Panama is still in good or rather bad memory for many consumers. The so-called “Panama Papers” contained information on many large investors and companies that used to secure money from the domestic tax authorities in the tax haven, mainly through letterbox companies. At the expense of the taxpayers in many countries. At the same time, Panama is popular because of its legal openness to economic sectors that are increasingly under observation, especially in the EU. The current example of the Deribit stock exchange confirms this fact once again. As a provider for derivatives trading in the area of digital currencies from Bitcoin to Zcash, the operator was primarily known to real industry experts.


Fight against money laundering and end of anonymity as reason to move

Now the decision has been made: The former Dutch crypto derivatives exchange of Deribit B.V. is moving and has chosen Panama as its new location. The company cites the increasingly strict legal situation in the European Union as the reason. As expected, it is about the international anti-money laundering guidelines (AML), which have been implemented step by step not only in EU countries. Added to this are the high requirements in the area of platform user identification in accordance with the KYC regulations. KYC stands for “Know Your Customer”. In many places, these mentioned rules are to be implemented in the future through government regulation for all types of cryptographic services from wallet providers to stock exchanges and those portals that enable trading in cryptographic derivatives.


Many countries want to provide legal clarity for the cryptomarket

There is not too much time between the announcement and the realisation of the move of Deribit B.V. as operator of the stock exchange of the same name. The transfer of business and responsibility to the subsidiary DRB Panama Inc. is scheduled to follow in one month’s time on 10.02.2020. This is the latest news from the stock exchange. Even though the company from the Netherlands may not necessarily be one of the big names in the industry. The new regulations that apply in Germany, for example, as a result of the new block chain strategy and the obligation to report to BaFin, could have serious consequences. If sceptics are right, many other service providers based in Europe could also relocate to other countries with lower regulatory hurdles.