Deribit ID verification?

[Kyraishi]

I received an email a few days ago about Deribit moving to Panama, etc. etc.

The ramifications are what's important. Apparently now unverified users can only withdraw 1 BTC per day without being forced to get verified, which is a  far cry from the model right now under which you can withdraw an unlimited amount.

So, do you guys expect them to continue to tighten up their policy in regards to KYC in the future, or would this just be a one-off move?

[TheUltraElite]

If an exchange is moving to a new location then it is a clear sign they did not have a proper partnership with the previous location's authorities and laws. They tend to go for more pro-crypto countries to register their businesses or locations where crypto is still not that important to the authorities. Its more like a cat and mouse chase game and sooner or later they will run out of such countries 

They may decide to tighten KYC procedures. Since deribit has margin trading it is obvious people are going to transact more than 1BTC/day. It the trade-off that authorities force on them in order to track the people who are trading there.

[figmentofmyass]

If an exchange is moving to a new location then it is a clear sign they did not have a proper partnership with the previous location's authorities and laws.

they cited AMLD5 as the official reason for their move. technically the netherlands has not passed it into law yet, so they are just preemptively leaving. https://blog.deribit.com/technology/deribit-moving-to-panama-kyc-february-2020/

Currently, Deribit is operating in the Netherlands. However, the Netherlands will most likely adopt a very strict implementation of new EU regulations that also apply to crypto companies (5AMLD). 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. 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. The implementation of these changes would greatly affect the exchange and its customers. Therefore, we have decided to operate the Platform from Panama.

it's pretty annoying that they moved to panama only to begin requiring KYC anyway. level 0 accounts may not need to provide a government ID, but they do need to provide name/DOB/residential address so jumio can do a background check.

[Kyraishi]

If an exchange is moving to a new location then it is a clear sign they did not have a proper partnership with the previous location's authorities and laws. They tend to go for more pro-crypto countries to register their businesses or locations where crypto is still not that important to the authorities. Its more like a cat and mouse chase game and sooner or later they will run out of such countries 

They may decide to tighten KYC procedures. Since deribit has margin trading it is obvious people are going to transact more than 1BTC/day. It the trade-off that authorities force on them in order to track the people who are trading there.

What I'm afraid of is that one day, they're just going to screw everyone over by asking for KYC even for those who don't withdraw more than 1 BTC per day. That is entirely possible, especially using the new jurisdiction as an excuse.

I'm not saying that they will, since AFAIK Deribit is one of the more honest operators out there, but this move of country does raise some important questions.

Anyhow, all we can really do is wait and see.

[Slow death]

I received an email a few days ago about Deribit moving to Panama, etc. etc.

with good options like Malta, did they choose panama? I wonder between Panama and Malta which of these countries would provide the best advantage for them?

Apparently now unverified users can only withdraw 1 BTC per day without being forced to get verified

I think it's a good deal, it would be worse if people could not withdraw anything until they did KYC

So, do you guys expect them to continue to tighten up their policy in regards to KYC in the future, or would this just be a one-off move?

KYC is here to stay, but from what I saw of them, they are not anonymous:


John Jansen ( CEO )

Marius Jansen ( COO )

Sebastian Smyczýnski ( CTO )

Source: https://www.deribit.com/pages/information/about-us