- Gemini has decided to exit Canada after the authorities announced stricter regulation for the crypto industry.
- Initially, Gemini decided to comply with the changes. But it later felt that the hassle was not worth it.
- Users have been notified – they have until December 31 to withdraw their funds.
Cryptocurrency exchange Gemini has decided to cease its operation in Canada. All users have been notified through an email. They have until 31st December 2024 to transfer their funds.
The sudden departure of Gemini is triggered by the new regulatory changes imposed by the Canadian government earlier this year. The rules governing financial institutions, especially crypto, have been strengthened.
- Every crypto asset trading platform will now have to sign a legally binding pre-registration undertaking (PRU) if they want to continue operating in the country.
- These platforms were also restricted from allowing stablecoin transactions for Canadians unless they had approval from the Canadian Securities Administrators (CSA).
Initially, Gemini decided to work through the changes and continue operating in Canada. It also filed the pre-registration on April 13 claiming that Canada played an important role in its international growth strategy.
However, as the process progressed, more and more complications started creeping in. As the complications outweighed the benefits, the company had to take a step back and evaluate whether it was really worth it.
Gemini Is Not the Only One Leaving
Gemini is not the only one who decided that all the hassle of complying with the new rules is not worth it. Popular crypto exchanges dYdX, Paxos, Bybit, and Binance also decided to leave Canada despite filling out the pre-registration.
However, Binance has a whole other issue going on, with its CEO being arrested (and released) for money laundering. So that might be another factor contributing to its exit.
But it’s not all bad. For instance, Coinbase, another popular exchange, has managed to secure a restricted dealer license from the CSA this April, and it will continue to operate in Canada. So will Kraken, another popular platform.
At the end of the day, it’s important to note that even though this decision has forced some companies out of Canada, in the long run, it will be beneficial for all. These changes are being made to make investments more secure.
It was triggered by a series of insolvencies with companies like FTX, Celsius, and Voyager Digital. Investors faced substantial losses on their investment here, which was affecting the crypto industry overall. Hence, this move was much needed.
