Gemini to cease operations in Canada
October 01, 2024
The cryptocurrency exchange Gemini, founded by the Winklevoss twins, has informed its Canadian users that it will cease its operations in the country by December 31, 2024.
This comes after OKX, Paxos, Bybit, and Binance exited the Canadian market.
The platform stated that all accounts will be closed by the end of the year, and users are given 90 days to withdraw their assets.
Reason for the exit — new regulations
Gemini's exit from the country is a response to the regulatory changes introduced by the Canadian Securities Administration (CSA) earlier this year.
On February 22, the regulator required cryptocurrency trading platforms to sign a pre-registration undertaking (PRU) to continue their operations.
These rules also impose restrictions on stablecoins, prohibiting Canadian clients from purchasing or depositing them without prior CSA approval.
Investor protection following bankruptcies
The new rules were introduced following a series of high-profile bankruptcies in the crypto sector, including Voyager Digital, Celsius Network, FTX, BlockFi, and Genesis Global. According to the CSA, the rules were implemented to enhance investor protection.
As part of this mandate, registered cryptocurrency trading platforms (CTPs) were given a deadline of December 2024.
After this date, platforms will be prohibited from allowing clients to purchase, deposit, or enter into contracts for value-referenced crypto assets (VRCA).