dYdX to Move Operations to Cayman Islands

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As US regulators increase scrutiny on decentralized finance (DeFi) protocols, dYdX, a decentralized exchange, has announced plans to move its operations to the Cayman Islands.

This decision was made through a community referendum with over 90% approval, and involves transferring the dYdX operating trust (DOT) to a Cayman Islands foundation company, according to a statement from the dYdX Foundation.

The move is seen as a measure to protect dYdX contributors from potential legal threats from US securities regulators, who have shown a willingness to pursue crypto projects based outside of their jurisdiction.

The company has not yet responded to requests for comment. The Cayman Islands, known for its relaxed regulatory environment for digital assets, is a logical choice for the transition of the DOT fund, which was launched last year with the goal of funding dYdX’s governance and operations initiatives.