As an analyst with years of experience navigating the intricate web of cryptocurrency regulations and market trends, I find myself not surprised by Gemini’s decision to exit the Canadian market. The evolving regulatory landscape has been a challenge for many players in this space, and Canada seems to be at the forefront of these changes.
Gemini, a prominent digital currency trading platform established by the Winklevoss duo, has revealed intentions to withdraw from the Canadian market by year’s end, mirroring Binance‘s exit earlier in 2021 due to mounting regulatory difficulties.
On Monday, September 30th, Gemini requested their Canadian customers to promptly wrap up their accounts and withdraw any remaining funds. The exchange has set a deadline of December 31, 2024 (exactly 90 days from now), during which users must complete the process, including transferring assets such as fiat currencies and cryptocurrencies to external wallets.
Regulatory Pressures Prompting Exit
As per the company’s statement, starting from January 1 onwards, any accounts that haven’t been settled by December 31 will be limited. Users might encounter difficulties in retrieving their account balances thereafter.
On the other hand, the firm has promised its clients that the disengagement procedure will prove to be uncomplicated, as they offer assistance from their customer service team during this transition period.
It’s becoming common for cryptocurrency companies, including Gemini, to reduce their presence or exit the Canadian market completely, as a response to intensifying regulatory oversight. The recent modifications to Canada’s securities laws have resulted in increased complexity and expenses when conducting business within the country.
Leading crypto exchanges such as Binance, Bybit, and Bitstamp have chosen to withdraw from certain jurisdictions due to the continuous changes in the regulatory environment.
This year in February, the Canadian Securities Administrators (CSA) implemented fresh rules. Now, crypto exchanges and service providers must agree to a legally binding pre-registration commitment to keep functioning within Canada. This registration process, which bestows investment dealer status upon them, ensures that these companies adhere to local legal requirements.
Furthermore, it’s required that platforms secure CSA approval prior to enabling Canadian users to purchase or deposit stablecoins.
What Lies Ahead for Gemini?
Although Gemini hasn’t shared its intentions about coming back to the Canadian market, the firm continues to prioritize adhering to regulatory requirements within its current markets.
Worldwide, Gemini is proactively growing its presence beyond Canada, focusing significantly on the regions of Europe and Asia.
Across Europe, the entity has been expanding its footprint, setting up operations in nations such as Denmark, Sweden, Portugal, the Czech Republic, Latvia, and Liechtenstein, thereby broadening its reach.
Previously, our company secured authorization from the Financial Markets Authority of France (AMF) to function as a Virtual Asset Service Provider (VASP) within the French market.
Speaking of the Asia-Pacific area, the exchange has some grand objectives in mind. In June, they publicly declared their intention to establish a significant engineering hub in Gurgaon, India. This engineering center is anticipated to be the firm’s second largest, following the one in the US.
Beyond India, the company also intends to strengthen its team in Singapore by hiring up to 100 additional employees. Gemini identified Singapore as its APAC headquarters and has already designated its Global Chief Technical Officer, Pravjit Tiwana, as the Asia-Pacific CEO.
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2024-10-01 12:09