Crypto exchange Gemini, founded by the Winklevoss twins, announced plans to cease operations in Canada, giving users until December 31, 2024, to withdraw their funds. This decision comes in response to new regulatory requirements.
Regulatory Pressure Forces Exit
The account closures are largely driven by tightening regulations from Canadian financial authorities. In February 2024, the Canadian Securities Administrators (CSA) required crypto asset trading platforms to sign a legally binding pre-registration undertaking (PRU) to continue operations. Additionally, crypto exchanges were restricted from facilitating stablecoin transactions for Canadian clients without CSA approval, posing significant challenges for the exchanges.
Gemini Follows Other Major Exits
Gemini’s exit from Canada mirrors a broader trend of crypto exchanges leaving the Canadian market. In May 2024, crypto exchange Binance announced its departure from Canada, despite initially filing the necessary pre-registration. Other exchanges like dYdX also withdrew from the country, citing regulatory burdens.
Impact on Canadian Users
For Canadian crypto users, Gemini’s decision is another chapter in the ongoing story of how increased regulation is reshaping the digital asset landscape. As financial authorities continue to prioritize investor protection, the departure of international exchanges like Gemini and Binance may pave the way for a more restricted yet secure market for crypto trading in Canada. Affected users are advised to withdraw their assets by the specified deadline to avoid complications.
The closure of Gemini accounts in Canada by the end of 2024 is a significant event for the country's crypto market. Under increasing regulatory pressure, users should be prepared for changes in the market conditions.
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