BMA issues license for DerivaDEX
14 November 2025 Bermuda
Image: Margot/stock.adobe.com
Decentralised autonomous organisation (DAO)-governed decentralised derivatives exchange DerivaDEX has been granted a Digital Asset Business License by the Bermuda Monetary Authority (BMA), a move it says makes it the first organisation of this nature to receive formal regulatory approval.
This will allow for banks, hedge funds, and asset managers to access crypto derivatives within a recognised legal framework.
The Honourable E. David Burt, JP, MP, Premier of Bermuda, believes: “The future of digital finance depends on establishing a strong foundation of compliance, regulation, and customer protections in decentralised markets.”
DerivaDEX allows users to maintain full custody of assets while meeting regulatory obligations under the oversight of the BMA, intending to bridge the gap between TradFi and DeFi.
CEO of DEX Labs, Aditya Palepu, says: “The license removes the final barrier preventing institutions from participating in decentralised derivatives markets.”
He adds: “This license demonstrates that decentralised exchanges can operate within established regulatory frameworks while maintaining the transparency and risk controls institutions require.”
DerivaDEX is built on a Trusted Execution Environment, which the company says encrypts orders until execution and safeguards participants against maximum extractable value exploitation and information leakage.
Its DAO-based governance framework is meant to allow token holders and institutional participants to manage platform risk reserves, treasury, and product development in conformity with the appropriate regulatory standards.
Kendaree Burgess, managing director, Bermuda Business Development Agency, says: “The BMA’s approval of DerivaDEX demonstrates what’s possible when thoughtful regulation meets technological advancement — proving that we can balance progress with accountability and create the frameworks the future of finance will rely on.”
DerivaDEX is planning on launching its platform with Bitcoin and Ethereum perpetual contracts, while initially being available to verified institutional traders, and further plans to expand into tokenised equity derivatives and prediction markets, subject to additional regulatory approvals.
This will allow for banks, hedge funds, and asset managers to access crypto derivatives within a recognised legal framework.
The Honourable E. David Burt, JP, MP, Premier of Bermuda, believes: “The future of digital finance depends on establishing a strong foundation of compliance, regulation, and customer protections in decentralised markets.”
DerivaDEX allows users to maintain full custody of assets while meeting regulatory obligations under the oversight of the BMA, intending to bridge the gap between TradFi and DeFi.
CEO of DEX Labs, Aditya Palepu, says: “The license removes the final barrier preventing institutions from participating in decentralised derivatives markets.”
He adds: “This license demonstrates that decentralised exchanges can operate within established regulatory frameworks while maintaining the transparency and risk controls institutions require.”
DerivaDEX is built on a Trusted Execution Environment, which the company says encrypts orders until execution and safeguards participants against maximum extractable value exploitation and information leakage.
Its DAO-based governance framework is meant to allow token holders and institutional participants to manage platform risk reserves, treasury, and product development in conformity with the appropriate regulatory standards.
Kendaree Burgess, managing director, Bermuda Business Development Agency, says: “The BMA’s approval of DerivaDEX demonstrates what’s possible when thoughtful regulation meets technological advancement — proving that we can balance progress with accountability and create the frameworks the future of finance will rely on.”
DerivaDEX is planning on launching its platform with Bitcoin and Ethereum perpetual contracts, while initially being available to verified institutional traders, and further plans to expand into tokenised equity derivatives and prediction markets, subject to additional regulatory approvals.
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