Gemini will discontinue operations in Canada by the end of this year, urging users to takeout their funds before December 31.
Gemini, a leading cryptocurrency exchange founded by the Winklevoss twins, has announced plans to exit the Canadian market by the end of this year following in the footsteps of Binance, which left the Canadian market earlier this year due to increased regulatory challenges.
In an email sent to customers on Monday, September 30, Gemini urged its Canadian users to take immediate action to close their accounts and withdraw any remaining funds. The exchange has given users 90 days, ending on December 31, 2024, to complete the process, including transferring assets like fiat currencies and crypto to external wallets.
Regulatory Pressures Prompting Exit
According to the company, after the December 31 deadline, all remaining accounts will be restricted, and users may face challenges accessing their balances.
However, the company has reassured customers that the withdrawal process will be straightforward, with customer support available to assist throughout the transition.
Gemini’s departure from Canada is part of a broader trend of crypto firms scaling back or leaving the market entirely due to increasing regulatory scrutiny. Recent updates to Canada’s securities regulations have made it more complex and costly to operate in the country.
Other major exchanges, including Binance, Bybit, and Bitstamp, have already made similar exits, driven by the evolving regulatory landscape.
In February this year, the Canadian Securities Administrators (CSA) introduced new regulations requiring crypto exchanges and service providers to sign a legally binding pre-registration undertaking to continue operating in Canada. This registration, which grants investment dealer status, ensures that companies comply with local laws.
Additionally, the rules mandate that platforms receive CSA authorization before allowing Canadian users to buy or deposit stablecoins.
What Lies Ahead for Gemini?
While Gemini has not indicated whether it plans to return to the Canadian market, the company remains focused on maintaining regulatory compliance in its remaining markets.
Outside Canada, Gemini is actively expanding its global footprint, with particular emphasis on Europe and Asia.
In Europe, the exchange has made significant strides, establishing a presence in countries like Denmark, Sweden, Portugal, Czechia, Latvia, and Liechtenstein.
Earlier this year, the company gained approval from France’s financial regulator, the Autorité des marchés financiers (AMF), to operate as a virtual assets service provider (VASP) in the French market.
As for the Asia-Pacific region, the exchange has ambitious plans. In June, the exchange announced its plans to open an engineering hub in Gurgaon, India. The engineering center is expected to be the company’s largest after the US.
In addition to India, the exchange also plans to bolster its workforce in Singapore with up to 100 new hires. Gemini said the country will serve as the company’s APAC headquarter and has already appointed its Global Chief Technical Officer Pravjit Tiwana as Asia-Pacific chief executive.
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