Deribit, a crypto futures and options exchange that is moving from the Netherlands to Panama to avoid Europe's new Anti-Coin Laundering law has released its newly updated Know Your Customer (KYC) policy.

In a Jan. 17 blog post, Deribit conspicuously said that its relocation to Panama has been mainly acquired past the new Anti-Money Laundering Directive (5AMLD), a major European law that aims to tackle money laundering and terrorist financing by stricter regulation of crypto-related businesses.

While 5AMLD was enforced on Jan. 10, 2022, 5AMLD has non been adopted in holland to appointment, just is still expected to come into strength in the upcoming months, Deribit said, adding:

"Due to the ambiguity of the 5AMLD implementation procedure, it is not known how the new regulation will affect Deribit."

Panama-based Deribit is coming on February. 10, 2022

Deribit originally announced the news on Jan. ix, noting that starting from Feb. ten, 2022, the entire operational platform will no longer be operated by the Dutch company Deribit B.V., simply DRB Panama, which is a 100% subsidiary of the Dutch entity. While Deribit's operations alongside client holdings and system settings are moving to Panama, the company's servers will exist moved to London, the visitor said.

After the relocation, Deribit volition employ new terms of service and privacy policy, which will exist "materially similar to the terms of Deribit B.V.," the firm noted.

Two tiers for KYC requirements to apply in February

However, the exchange will purportedly significantly alter its KYC requirements, according to the announcement. Basically, Deribit will innovate an additional tier of KYC requirements, providing two different KYC levels — Level 0 and Level 1 — in order to prevent illegal activities on its platform. Level 0 volition allow Deribit clients to withdraw up to 1 Bitcoin (BTC) or fifty ether (ETH) per 24 hours, while no withdrawal limits apply to Level i.

Specifically, Deribit is planning to register all its current clients every bit Level 0 clients. Level 0 KYC requirements will crave just bones information such equally email, name, date of birth and country of residence. Meanwhile, Level 1 requires proof of your identification such as passport or government ID and portfolio margining.

The full list of Deribit's new KYC requirements is available on their site.

Deribit KYC requirements as of 10 February 2022

Deribit KYC requirements equally of 10 Feb 2022. Source: Deribit

Crypto industry to strengthen AML and KYC compliance

Deribit noted that the exchange reserves the right to immediately close any account on the platform and liquidate any open positions in case it finds out that provided account data such as location or place of residence was faux.

The visitor added that Deribit had partnered with major blockchain analytics firm Chainalysis in order to strengthen its tools for monitoring suspicious crypto transactions.

Deribit is not the showtime visitor to change its operating structure due to new KYC and anti-money laundering laws enforced by the European Union. In fact, some companies such as crypto wallet provider Bottle Pay had to end operations in late 2022, challenge that the regulatory telescopic would ruin existing user experience.

In dissimilarity, other crypto-related firms in the European union such as U.M.-based CEX.IO exchange claim that they have been fully compliant with the new law equally they had been extensively working on its compliance policy since 2022.