Deribit Plans to Expand Options Trading in the EU
The popular crypto derivatives exchange, Deribit, is looking to obtain a brokerage license in the European Union (EU) following a $28 million hack last year. Despite initial plans to move to Dubai, Deribit now sees the EU as the ideal environment to launch new products. Deribit’s CCO, Luuk Strijers, expressed cautious optimism about the decision, acknowledging the potential challenges ahead.
“Is this the best environment to launch new products or should we defer? That’s what keeps us awake.”
Luuk Strijers, Deribit CCO
In early 2024, Deribit aims to introduce options trading for altcoins such as Solana (SOL), XRP, and Polygon (MATIC). These assets have been classified as securities by the US Securities and Exchange Commission. Currently, Deribit offers options for Bitcoin (BTC) and Ethereum (ETH).
Expanding Despite Past Incidents
Despite a previous hack, Deribit remains committed to expanding its services globally. The exchange experienced a $28 million exploit in November 2023 but assured its clients that their lost funds would be compensated from emergency reserves rather than affecting the insurance fund. With over 80% control of the global crypto options market, according to Laevitas, Deribit has raised $140 million in funding from 10T Holdings and Akuna Capital since its establishment in 2015.
Hot Take: Deribit Pursues EU Expansion Amidst Market Volatility
Deribit’s decision to seek a brokerage license in the European Union reflects its confidence in the region’s potential for growth in the crypto market. Despite facing a significant hack, the exchange remains determined to expand its options trading services beyond Bitcoin and Ethereum. By introducing options for Solana, XRP, and Polygon, Deribit is positioning itself to cater to a wider range of altcoin traders.
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