Gemini Declares Departure from the Canadian Market

• Gemini ceases operations in Canada, blaming strict regulatory measures.
• Customers must withdraw their funds by December 31 as all accounts will be terminated by that date.
• New regulations expected in 2026 will impose further restrictions on decentralized markets.

Echoing the departures of other large exchanges, Gemini has recently announced its exit from the Canadian market, joining platforms like Binance and Bybit in this strategic retreat.

This decision underscores the significant obstacles that cryptocurrency exchanges encounter while trying to comply with Canada’s increasingly rigorous regulatory framework.

Previously, Gemini viewed Canada as a vital part of its global outreach initiative, making this withdrawal a notable turn in its operations.

Reasons Behind the Exit of Crypto Platforms from Canada

The recent resignation of Gemini is indicative of a widespread trend among crypto platforms leaving Canada, largely due to escalating compliance costs and intricate regulatory requirements.

Since early 2023, Canadian regulatory bodies have reinforced their control over the cryptocurrency landscape. This began with the Canadian Securities Administrators (CSA) mandating all crypto exchanges to sign legally binding pre-registration contracts. These new guidelines were coupled with pre-existing regulations prohibiting margin trading and limiting stablecoin operations, presenting challenges for many crypto exchanges.

Initially, Gemini adhered to the fresh regulations by submitting a pre-registration proposal in April 2023. However, the continuously evolving regulatory atmosphere proved to be insurmountable. Similar to Gemini, platforms like Binance and OKX have documented their withdrawals due to the exorbitant costs associated with conforming to Canada’s complex legal stipulations.

Looking to the future, Canada’s regulatory landscape is about to tighten further, with the forthcoming Crypto-Asset Reporting Framework set for implementation in 2026. This framework will compel crypto service providers to file annual transaction reports that include sensitive client data like addresses and taxpayer IDs.

Deadline for Gemini’s Canadian Users to Withdraw Funds

On September 30, Gemini formally notified its Canadian clients to withdraw their assets by December 31, 2024.

The Winklevoss-led exchange is granting its users a 90-day period to relocate both their cryptocurrency holdings and fiat currencies before closing all accounts in Canada.

With Gemini’s exit, Canadian users face a dwindling array of options for accessing decentralized markets, while international exchanges like Coinbase and Kraken continue to operate within Canada.