Gemini, a leading cryptocurrency exchange, is adapting to new regulations impacting Virtual Asset Service Providers (VASPs) in the UK.
Announced on November 7, Gemini is realigning its operations to comply with the recently introduced Travel Rule regulations in the UK. These regulations mandate financial institutions and VASPs to share information regarding virtual asset senders and recipients. Gemini has forged a partnership with Travel Rule Universal Solution Technology (TRUST) to facilitate these adjustments.
Commencing November 17, outgoing transfers of Bitcoin and other cryptocurrencies from Gemini will be restricted to a curated list of 58 TRUST-registered companies. Notable industry players like Binance US, Coinbase, Circle, Fidelity Digital Assets, Kraken, and PayPal are exempt from these restrictions, reinforcing the commitment to transparency and compliance with the Travel Rule. Inbound transfers from non-TRUST VASPs to Gemini may face limitations starting December 1, ensuring ongoing transparency in transaction information.
Enhanced information requirements will be implemented for deposits or withdrawals from Gemini wallets to other crypto addresses. This data will be selectively shared only between the sending and receiving providers.
Effective November 17, 2023, Gemini will exclusively support transfers of ERC-20 tokens, ETH, and BTC. While unsupported tokens can still be traded and held within Gemini, they will be excluded from deposit and withdrawal options, except for transfers to self-hosted wallets. These adjustments align with Gemini's commitment to compliance with the evolving regulatory framework in the UK's digital asset industry.
Gemini's proactive regulatory compliance measures coincide with the UK's tightening grip on the digital asset sector. The country has been actively shaping regulatory frameworks, introducing a financial promotion regime and passing legislation empowering law enforcement to seize crypto assets linked to illicit activities.
The Travel Rule, established by the Financial Action Task Force in June 2019, sets global standards for VASPs and financial institutions to share information about virtual asset senders and recipients, with the aim of curbing criminal exploitation of cryptocurrencies.
Gemini's comprehensive regulatory adjustments include the creation of dedicated social media channels for UK customers, the addition of risk warnings on its platform, and a call to customers to stay informed about these changes. The implementation of the Travel Rule is viewed as a positive stride towards fostering compliant, sustainable, and secure growth within the crypto industry.
