As Dubai opens its arms for global expansion to financial technology industries from all around the world as they plan to drive its economy away from the oil business and focus on relying on other sectors.
For the past few years, Dubai has reputed itself by relieving the burdens of the crypto-currency companies, as a go-to location for cryptocurrency companies. The Emirate has established kinder treatment by its regulators for the crypto-bearers during the market turn-down. Additionally, they granted licenses to competitors of the bankruptcy-filed FTX Binance, Bybit, and Komianu in recent months
reason behind their shifting
In a fresh development, Derbit, a cryptocurrency option exchange that also specializes in futures exchanges, announces its desire to shift its Headquarters to Dubai from Panama. The Cryptocurrency exchange is a European-based company, popular among traders and investors for its great liquidity and minimal fees. The exchange platform also plans to expand its reach to Brazil, the United Kingdom, and Singapore.
The trading platform plans to open its office in Dubai with about 10 people, which includes, core employees and local hires, according to the Chief Legal Compliance and Regulatory Officer of Deribit, David Dohmen.
The plans to move its headquarters came after a lot of clients suggested for the crypto-exchange be regulated, as they are not regulated in Panama. Since the regulatory winds were blowing in the Middle East.
The future-promising Emirate has won the hearts of cryptocurrency trading companies with its crypto-friendly policies by allowing the world’s largest Crypto trader Binance to expand their business in Dubai.
Moreover, the international hub is planning to attract more crypto-currency companies – as they unveil a metaverse initiative that aims to employ more than 40,000 virtual jobs. By 2030, Dubai is expecting more than 1,000 blockchain and metaverse companies.
Despite their relocation, some of the employees are expected to remain in the office in Panama to run its activities, as the company currently employs around 100 employees worldwide. The Netherlands-based company has a running office in Amsterdam also.
The UAE became the first nation in the world to pass the first law regulating cryptocurrency activity in the Emirates and established an independent regulator to track all the activities in the sector. The desire to invite the blockchain industry into the Emirate comes with strict laws regarding cryptocurrency activities to curb its scamming power over customers. The experts believe these laws are necessary for the customers; the lawmakers do not intend to repeat another scam like the owner of the FTX, Sam bankman did last year.
The crypto exchange firm Deribit also teamed up with the Eventus platform for surveillance. The platform is known for its best-in-class compliance work that enables it to meet the surveillance exchange of the cryptocurrency exchange.
Their platform Vlidus is user-friendly and deployed customized equities, futures, and options for clients.
Derbit’s selection of Eventus’Validus was after working closely with the surveillance system. David Dohem revealed that he was impressed with the dedication and efforts of the Eventus team, as they consistently improved their work with the clients. David seemed assured that working with the Eventus team can help the crypto trading platform to meet its ends and resolve any occurring issues.
Their collaboration with Eventus comes after a security breach happened at Deribit. During the breach, Hackers stole around $28 million in Bitcoin, Ethereum, and others from the exchange’s top-earning wallets. Deribit halted all withdrawal activity in the wake of the security breach. The experts believe that hackers stole the private keys to the hot wallets from the company’s server. However, the company servers comes to the rescue before the funds were moved into any mixer or any laundering service.
Coming to the point, Deribit’s plans to relocate would be a necessary and strategic move as the crypto-trading company is now not under any regulations. By shifting to Emirate, the cryptocurrency exchange will be under the new regulations implemented by the nation. Furthermore, since Dubai is an international hub, it will gain access to the global markets and flourishing financial ecosystem of the city. The company would also be able to attract more business mind clients, investors as well as traders.
Despite its friendly policies the emirate has received criticism over the visit of Sam Bankman fried to the emirate to secure funding., Former owner of FTX. the emirates were also accused of its number of customers trading in the FTX.
All of these accusations were downplayed by the UAE’s minister of Artificial Intelligence, Digital Economy, and Remote Work Applications, Omar Sultan Al Olama. He countered all the allegations stating that Sam Bankman only visited UAE once. And he called out governments to ensure, those who are accused of wrongdoings, that are strictly dealt with.
He continued that FTX customers based in UAE may not have invested much with FTX, in responding to the second allegation. He also assured that Emirates will be the hub for cryptocurrencies despite the recent fraud and scams by the cryptocurrency exchange owners.
In the wake of new crypto-friendly policies, more cryptocurrency exchanges can be expected to open their offices in the emirate.