Deribit broke the news on Jan. 9, explaining its platform will move to Panama from the Netherlands, owing to stringent EU regulations the Netherlands may soon adopt, known as 5AMLD. The move will officially occur on February 10, 2020, Deribit said in a statement.
Crypto traders see potential for other market platforms to exit after crypto derivatives exchange Deribit announced a move to Panama from its EU base in the Netherlands.
“This is something they had hinted at in an interview months ago, and it’s something I fully expect we see more of going forward in the crypto space”, trader, Twitter personality and co-host of the Crypto Street Podcast Prince told Cointelegraph in a message.
As part of the transition, Deribit announced upcoming changes to its Know Your Customer (KYC) requirements, adding two tiers of authorization on the platform, based on KYC data that customers provide.
Trader and Cointelegraph analyst Michaël van de Poppe also spoke on Amsterdam-based exchange Deribit and its move to avoid AML5 regulations.
“I think it’s the easiest way for them to go further, as they otherwise would get struck in the new regulations in the EU”, van de Poppe said in a message, adding, “they are not the only ones.”
Deribit’s move comes in the midst of a changing regulatory landscape in the crypto space as the U.S. Securities and Exchange Commission (SEC) tightens its watch. Cointelegraph reported on the SEC’s crackdown of initial coin offerings (ICOs) in 2018.
Exchanges have begun to take note of these changing tides. Binance announced a ban on U.S. customers in 2019, shortly before launching derivatives products. The exchange set up a separate regulatory-friendly U.S. outpost later in the year offering fewer features.
Seychelles-based derivatives giant BitMEX reportedly requires little KYC, although the platform bans certain locations based on their IP addresses.
Adding to his comment on Deribit, Prince noted:
“A lot of these derivatives venues and exchanges that tout no KYC requirements have been doing KYC for larger traders for a while now anyways. I fully expect to see more trading venues follow suit going forward.”
In December, Cointelegraph also explored trading bans and regulations in China over the course of 2019.
Tracking Bitcoin Transactions, Explained
Over the years, the number of transactions being executed over the Bitcoin network has continued to increase apace. This has meant that miners end up prioritizing transactions with higher fees, including these in their blocks first.
When a crypto transaction is sent with a lower fee, it can take hours, days and potentially weeks for it to be confirmed. Such long delays normally indicate that the transaction is continually being outbid, and miners have little incentive to get it cleared. As a result, it ends up languishing in a mempool, waiting longingly for a block to come along.
Crypto wallets – and some exchanges – have started to help users achieve the best chance of their transaction being verified the first time around. Some monitor network activity and enforce dynamic fees, meaning the charges attached to each transaction fluctuate based on how busy miners are. If you are in a rush, it is also possible to manually add a higher fee to boost your chances of a speedy execution. Conversely, if you’re not a rush, you can save money on fees and accept it might take a little longer for your funds to reach the recipient