October 2, 2023

KyberSwap Ethereum Exchange Leaves Malta Due to Fifth EU Directive

KyberSwap, the largest non-custodian exchange, has announced a change of jurisdiction from Malta to the Virgin Islands.

According to The Block, the reason for the decision wasThe Fifth European Union Anti-Money Laundering Directive (5AMLD EU), which entered into force on January 10, was reported to the registered users in the mailing list.

5AMLD EU suggests that financial investigation authorities should be able to obtain information that allows you to link virtual currency addresses to the identity of the owner.

The directive also obliges national registries to disclose beneficiaries of companies registered in EU member states, and prohibits financial institutions from servicing anonymous accounts.

While KyberSwap continues to work in Malta, however, it intends to move to a new location on January 24th.

“The rules raise too high a barrier for most traders, both in the regulatory plan and in the context of costs”- says the newsletter.

As a result, from next week the operatorwill KyberSwap will perform Virgin Islands-based KYRD International Limited, the sister company of Malta's Kyber Network International Limited.

According to Dune Analytics, KyberSwap is currently the largest non-custodian exchange, slightly ahead of Uniswap:

KyberSwap Ethereum Exchange Leaves Malta Due to Fifth EU Directive

According to the same analytical service, the growth in trading volumes on such exchanges over the past seven days has exceeded 20%.

Earlier, ForkLog reported that, due to the Fifth Directive, the Netherlands was replaced by Panama, the Deribit exchange, the leader in the volume of options trading.