Arkham Intelligence, a blockchain data analytics company backed by OpenAI's Sam Altman, has announced plans to launch a derivatives exchange in November.

Arkham's Move to the Dominican Republic

Arkham will close its offices in London and New York and relocate its headquarters to Punta Cana in the Dominican Republic to leverage the benefits of a free-trade zone.

Competition in the Derivatives Market

Anonymous sources have revealed that Arkham's upcoming derivatives exchange will cater specifically to retail investors, offering a user-friendly platform and competitive features. However, the platform will not be available in the U.S. due to regulatory restrictions. Arkham's entry into the derivatives market could change the competitive landscape, given its base of over 880K monthly active users.

Regulatory Challenges in the U.S. Market

The unfavorable regulatory environment for crypto centralized exchanges in the U.S. remains a challenge. Arkham will operate under a Dominican Republic free-trade zone license, providing tax and financial benefits. In October, the SEC charged Rimar Capital and its representatives for misleading investors about the use of artificial intelligence.

Arkham Intelligence is making a significant move into the derivatives market with the launch of its new project, which has the potential to compete with industry giants despite existing regulatory limitations in the U.S.