Netherlands-based cryptocurrency platform Deribit has been relocated to Panama due to strict European Union anti-money laundering regulations.
The regulations, which will come into effect on January 10, are expected to drive other exchanges from the European Union.
“The move is necessary to continue offering ‘easily accessible trading’ to customers,” Deribit wrote in a blog post. “If Deribit falls under these new regulations, this would mean that we have to demand an extensive amount of information from our current and future customers.”
The regulations will require platforms to make more changes to their operations. “The implementation of these changes would greatly affect our business and customers,” Deribit said.
The exchange will be operated by DRB Panama Inc. as of February 10.
However, Deribit, which will continue under the leadership of CEO John Jansen, has not unveiled any expected downtime during the relocation process although the platform hardware will be moved to London, UK.
“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,” Deribit said.
Reporter Larry Cermak said on his twitter account that Malta-based cryptocurrency exchanges Binance and OKex will also be ordered to comply with the EU regulations or leave.