By
Benjamin Njiri
April 23rd, 2024
Gemini Exchange has previously been providing crypto custody services to Canadian ETFs.
Gemini Trust Company, LLC, an American cryptocurrency exchange and digital assets custodian, has announced that it has filed a pre-registration undertaking with Canada’s Ontario Securities Commission (OSC). According to Cynthia Del Pozo Garcia, Gemini’s director of strategy and corporate development, once the OSC approves the registration, the crypto exchange will operate legally in one of the leading Americas markets. With the ongoing crypto regulatory pressure in the United States, Gemini seeks an operating license from Canada to tap into the widening crypto operations in the country.
Moreover, Canadian financial regulators have approved several crypto exchange-traded funds (ETFs) ahead of the United States. As a result, institutional investors seeking to explore the cryptocurrency market have done so through the Canadian channel.
“Canada has also been at the forefront of the global crypto fund management space, with publicly traded crypto ETFs being approved in the market since 2021. Gemini is proud to serve as a sub-custodian to many Canadian crypto ETFs through our dedicated Fund Solutions business,” Garcia noted.
The Gemini cryptocurrency exchange holds about $6.9 billion in crypto on its platform including $3.9 billion in Bitcoin and about $2.27 billion in Ethereum. With its deep liquidity market, Gemini has attracted both retail and institutional investors. Furthermore, Gemini holds several global operating licenses including the New York trust license, state money transmitter licenses, an E-Money License from the Financial Conduct Authority in the UK, and an E-Money License from the Central Bank of Ireland, among others.
Gemini and the Market Outlook
Gemini is among the cryptocurrency exchanges that have so far survived the 2022 bear market. Nevertheless, the exchange was a victim of the FTX and Alameda Research implosion late last year. Notably, Gemini announced an exposure of $900 million in its Earn program users after Digital Currency Group subsidiary Genesis Trading filed for Chapter 11 bankruptcy protection in the United States following a huge FTX disclosure.
Following the funds loss, Gemini was hit by a lawsuit from the United States Securities and Exchange Commission (SEC). In response, Billionaires Tyler and Cameron Winklevoss committed $100 million after settling a deal with Barry Silbert, the CEO of Genesis’ parent company DCG. Nevertheless, the Winklevoss twins condemned the SEC’s actions as counterproductive for not helping out the Earn program users.
1/ It’s disappointing that the @SECGov chose to file an action today as @Gemini and other creditors are working hard together to recover funds. This action does nothing to further our efforts and help Earn users get their assets back. Their behavior is totally counterproductive.
— Tyler Winklevoss (@tyler) January 12, 2023
The Gemini exchange has fled to the United States as most of its program could be subjected to regulatory scrutiny. Already, the SEC has indicated that crypto-staking programs are unregistered securities.
Meanwhile, the cryptocurrency market has been on an uptrend for the better part of 2023. According to the latest crypto market data, Bitcoin price is eyeing $31k while Ethereum price has traded above $2100 for the first time in ten months.