Gemini, the cryptocurrency exchange, announced its impending withdrawal from the Canadian market by the end of 2024, as outlined in an email sent to customers on September 30.
The message stated:
“Effective December 31, 2024, Gemini will close all customer accounts in Canada with limited exceptions. As a result, we will be closing your Gemini account.”
Users have until the year’s end—90 days from the announcement—to withdraw their funds from the platform.
Reasons Behind Gemini’s Departure from Canada
While Gemini has not explicitly detailed the motivations for its exit, it is part of a broader trend among crypto firms leaving the Canadian marketplace.
In recent months, several esteemed companies such as Binance and Paxos have opted to exit Canada, primarily citing challenging regulatory conditions. This trend followed the Canadian government’s introduction of more stringent regulations for cryptocurrency exchanges.
In February, the Canadian Securities Administrators (CSA) unveiled a directive mandating all trading platforms to sign a pre-registration undertaking (PRU) to continue their operations legally. The CSA stressed that these regulations are aimed at safeguarding investors in light of the 2022 closures of firms like Voyager, Celsius, and FTX. New rules have imposed restrictions on how exchanges interact with their clients, such as barring Canadian users from trading stablecoins without prior CSA approval.
Initially, Gemini adhered to these guidelines, signing the PRU and completing the required filings. The exchange had deemed Canada an essential market for its global expansion strategy. Thus, the sudden announcement of its departure has caught many analysts off guard.
As of the time of this report, Gemini has not responded to inquiries from CryptoSlate.
Current Landscape of Crypto Regulations
Gemini’s announcement coincides with the Canadian securities regulator extending the compliance deadline for crypto platforms to the end of 2024.
The new expiration date, previously scheduled for October, allows exchanges additional time to comply with regulatory obligations or present alternative solutions. Non-compliance could lead to penalties, including the prohibition of certain products for Canadian users.
According to information available on the regulator’s website, only a small number of exchanges, including Kraken and Coinbase, continue to operate under these new regulatory guidelines.
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