White House Report Criticizes Bybit, but Overlooks Deribit

The annual economic report from the White House released on March 20 has raised concerns about the digital asset ecosystem. The report highlighted certain aspects of this ecosystem that have been causing problems for consumers, financial systems, and the environment. However, while the authors of the report commendably focused on digital assets, they overlooked one major player in this industry.

Bybit was the primary target in this section of the report. It was criticized for its use of high leverage and lack of KYC (know-your-customer) requirements. These factors were identified as potential risks to investors who may suffer significant losses due to these practices.

While it is understandable that Bybit has received criticism due to these issues, what is surprising is that Deribit wasn't mentioned at all in this section of the report. Deribit operates with even higher leverage than Bybit and also does not require KYC verification for traders who want to use their platform.

This oversight by such a prominent institution like the White House raises questions about how much research went into compiling this section of their annual economic report. It also highlights just how complex and opaque some parts of today's digital asset markets can be.

Deribit is based in Panama and offers trading services primarily for Bitcoin options contracts with up to 100x leverage available which makes it even more risky than other exchanges operating in similar spaces. Despite being less well-known than Bybit among Western audiences or regulators due to its location offshore-based operation model may raise concerns regarding security standards as well as compliance issues under different regulatory frameworks around global jurisdictions where Deiribt customers are located.

In conclusion, while it's important that institutions like The White House are paying attention to developments within cryptocurrency markets there needs always be more thorough research done before releasing reports especially when they aim at identifying potential risks facing consumers within industry which still remains largely unregulated.