TLDR
Gemini is closing all customer accounts in Canada by December 31, 2024
Canadian users have 90 days to withdraw their assets from the platform
This move follows new regulations introduced by Canadian financial regulators
The new rules require crypto exchanges to sign a pre-registration undertaking (PRU)
Several other exchanges have also left the Canadian market due to these regulations
Gemini, the cryptocurrency exchange founded by the Winklevoss twins, has announced its decision to cease operations in Canada by the end of 2024.
This move comes in the wake of new regulations introduced by Canadian financial authorities, which have reshaped the landscape for crypto businesses operating in the country.
On September 30, Gemini sent an email to its Canadian users informing them of the impending closure of all customer accounts in Canada, effective December 31, 2024.
The exchange has given its users a 90-day window to withdraw their assets from the platform, signaling a complete exit from the Canadian market.
This decision by Gemini is a direct response to the regulatory changes implemented by the Canadian Securities Administrators (CSA) earlier this year.
On February 22, the CSA published a notice requiring all crypto asset trading platforms to sign a legally binding pre-registration undertaking (PRU) to continue their operations in Canada.
Gemini notified Canadian customers of the closure via email
These new rules were introduced following a series of high-profile insolvencies in the crypto industry, including the collapses of Voyager Digital, Celsius Network, and FTX.
The PRU includes several restrictions, notably prohibiting exchanges from allowing Canadian clients to buy or deposit stablecoins without prior approval from the CSA. These measures aim to enhance investor protection in the wake of recent turmoil in the cryptocurrency market.
Initially, Gemini had shown willingness to comply with the new regulatory framework.
The exchange filed its pre-registration on April 13, with a spokesperson stating that Canada was “one of the most important and developed markets in the Americas” and played an “essential role in Gemini’s international expansion.”
However, the recent announcement indicates a shift in the company’s strategy regarding its Canadian operations.
Gemini’s exit from Canada is not an isolated incident. The introduction of the new regulatory regime has prompted varied responses from major international crypto exchanges.
While some, like Kraken, initially stated their intention to file the required pre-registrations, others have chosen to leave the Canadian market altogether.
Binance, one of the world’s largest cryptocurrency exchanges, initially indicated it would comply with the new rules but later announced its departure from Canada on May 12.
Other exchanges that have exited the Canadian market following the introduction of the new regulations include OKX, dYdX, Paxos, and Bybit.
The exodus of these major players from the Canadian crypto market highlights the challenges faced by the industry in navigating evolving regulatory landscapes.
As governments worldwide grapple with how to regulate digital assets, crypto exchanges are forced to adapt their operations to comply with new rules or exit markets where compliance becomes too burdensome.
For Canadian crypto users, the departure of Gemini and other exchanges may limit their options for trading digital assets.
However, it’s worth noting that some exchanges have chosen to remain in the market and comply with the new regulations, providing continued services to Canadian customers.
The situation in Canada serves as a case study for the broader global conversation about cryptocurrency regulation.
As countries develop their approaches to overseeing the crypto industry, exchanges and other crypto businesses will need to carefully evaluate their ability to operate within these new frameworks.
Gemini’s decision to close its Canadian operations marks a significant development in the ongoing evolution of the cryptocurrency market in Canada.
As the December 31, 2024 deadline approaches, Canadian users of the platform will need to make arrangements to withdraw their assets and potentially find alternative exchanges for their cryptocurrency trading activities.
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