Gemini Exits Canada Following Binance and OKX
Date: 2024-10-01 Author: Henry Casey Categories: BUSINESS, IN WORLD
Canadian users of the Winklevoss-founded crypto exchange Gemini have received notices asking them to withdraw their funds by December 31. They have 90 days to transfer their assets.
According to the notice, dated September 30, all accounts will be closed by that date, except in rare cases. Customers were asked to withdraw both crypto and fiat balances.
The decision to leave the Canadian market was unexpected, given that Gemini had previously called Canada an important region for international expansion. However, the exit of the platform mirrors similar moves by major companies such as Binance, OKX, dYdX, and Bybit, which have faced difficulties due to local requirements.
The main reason for the exit of all these exchanges was the complexity and high cost of complying with Canadian regulations.
For now, several global platforms like Coinbase, Crypto.com, and Kraken continue to operate in Canada.
Tighter Regulations
The regulatory landscape began to change in February 2023, when the Canadian Securities Authority required all cryptocurrency exchanges to sign legally binding pre-registration agreements. In addition, they were prohibited from offering margin trading to Canadian users.
These measures are aimed at protecting investors and increasing transparency in the crypto space, but they also imposed strict restrictions on many activities in the market. One of the most challenging requirements was the restriction on the use of stablecoins. According to the rules, stablecoins or similar crypto assets could only be offered after receiving the appropriate approval.
Some exchanges, such as Bybit and KuCoin, were fined by the Ontario Securities Commission for operating without proper registration.
Although Gemini initially complied with all the requirements, filing for pre-registration in April 2023, it still decided to leave the market.
It is becoming increasingly difficult for Canadian users to participate in the decentralized market as regulations become more stringent.
On April 17, 2024, the Canadian government introduced a new reporting system for crypto assets, which will come into effect in 2026. This project requires all crypto services, including exchanges, brokers, and ATM operators, to provide detailed transaction data, including personal information of customers, on an annual basis.
