Gemini, the cryptocurrency exchange founded by the Winklevoss twins, has announced plans to close all customer accounts in Canada by the end of 2024. This decision comes in response to the introduction of new regulations for crypto exchanges operating in the country.
The Canadian Securities Administrators (CSA) published a notice in February 2024 requiring all crypto asset trading platforms to sign a legally binding pre-registration undertaking to continue operating in Canada. This new regulatory regime prompted many exchanges to reassess their operations in the country.
Gemini took proactive steps to comply with the new regulations, filing its pre-registration on April 13th. The exchange emphasized the importance of the Canadian market and its role in Gemini’s international expansion.
However, despite its efforts, Gemini has decided to close its Canadian operations. The reasons behind this decision remain unclear, but it is likely related to the challenges and costs associated with complying with the new regulatory requirements.
Several other major cryptocurrency exchanges, including OKX, dYdX, Paxos, Bybit, and Binance, have also announced their departures from the Canadian market. The new regulations, while intended to protect investors, have created a challenging environment for crypto exchanges operating in the country.
Gemini’s decision to close its Canadian accounts highlights the evolving regulatory landscape for cryptocurrency exchanges. While the Canadian government aims to create a safe and regulated environment for crypto trading, the new regulations have presented significant challenges for many platforms. As the industry continues to mature, it is essential for regulators and exchanges to work together to develop policies that promote innovation while protecting investors.
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Author: Sb
