Deribit, a subsidiary of Coinbase, has been granted a Broker-Dealer Licence by Dubai's Virtual Assets Regulatory Authority (VARA). The regulatory approval enables Deribit to route spot buy, sell, and trade orders directly to the Coinbase Exchange, significantly upgrading its spot trading product.

Enhanced Trading Capabilities

The VARA licence represents a key step for Deribit and its parent company Coinbase. With the new authorisation, Deribit can route client orders straight to Coinbase Exchange, which is expected to improve liquidity and provide clients with access to a broader range of assets. Assets acquired through the new platform can also be used as collateral for derivatives trading on Deribit.

Deribit operates as a cryptocurrency exchange specialising in derivatives trading, with a primary focus on options and futures products. It has long been the dominant venue for crypto options by open interest and volume, making the integration of spot access through Coinbase Exchange a notable expansion of its product surface.

VARA's Regulatory Role

The Virtual Assets Regulatory Authority (VARA) is Dubai's regulator overseeing virtual asset service providers. The authority ensures compliance with local laws and works to maintain a secure environment for digital asset trading. VARA, established in 2022, was among the first specialised virtual asset regulators globally and has become a central pillar of Dubai's effort to attract licensed crypto firms to the emirate. The licence adds to a growing roster of VARA-authorised entities operating under the framework.

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Source: Coinfomania