Deribit exchange will require identity verification before the end of the year

Deribit, the leading exchange for Bitcoin (BTC) and Ether (ETH) options contracts, will require all of its users to verify their identity before the end of the year.

Le KYC arrives in Deribit

The information was shared by John Jansen , CEO of Deribit , to The Block media. Initially, this measure was to come into effect on February 10, 2021, but the platform is stepping up the pace, by imposing KYC on its users earlier than expected.

For Deribit, this decision is crucial , as regulators raise the tone on platform compliance. Indeed, American residents are theoretically not allowed to use the platform, but they can very easily access it with a VPN.

But although Crypto Engine is based in Panama, the platform must exercise extreme caution. By imposing KYC measures, the company is ensuring that Americans cannot access its markets.

Thus, Deribit avoids attracting the wrath of regulatory bodies in the United States , which will save it from numerous complications, both financial and legal.

As of this writing, Deribit largely dominates the Bitcoin options contract market. Well ahead of CME, OKEx, Huobi and LedgerX, Deribit occupies on average 75% of daily volumes :

Verification measures intensify

This Deribit requirement therefore comes shortly after a similar decision taken by BitMEX , which had also set February 2021 to impose the KYC.

However, its recent difficulties with the US authorities have been a game-changer, forcing the platform to advance the deadline to November 5.

Little by little, KYC measures are imposed across the world , and almost all centralized platforms now have to follow the rules to survive.

A real irony of fate for Deribit, who had left the European Union to escape AMLD5 , a directive which since January 2020 requires exchanges to disclose the identity of their users and to report suspicious activity.

By settling in Panama, Deribit hoped that it would not have to impose a KYC on its customers, but the reality of things quickly caught up with the company .