Amid increasing regulatory pressure in Canada, the popular crypto exchange Gemini has decided to exit the Canadian crypto market.
Gemini is a U.S.-based crypto exchange founded by the Winklevoss twins in 2014. This platform offers a secure crypto trading environment, with a focus on regulatory compliance and user security.
On 1 Oct 2024, Gemini announced that it would shut down accounts belonging to Canadian users and urged Canadian customers to withdraw their funds before 31 Dec 2024. This means Canadian Gemini users now have only 90 days to leave the Gemini platform.
It is worth noting that the leadership of Gemini failed to explain the main reason behind this decision. However, media reports suggest that the exchange took this step due to increasing regulatory pressure.
Notably, just a few months ago, the Canadian Securities Administrators (CSA) instructed all platforms to sign a pre-registration undertaking (PRU) as a condition of continuing to operate in the country. The CSA said the directive was intended to protect crypto investors, citing the insolvencies of multiple digital asset trading firms, such as Voyager, Celsius, and FTX, which occurred in 2022.
Canada & Crypto Regulatory Environment
Canada has a relatively progressive regulatory environment for cryptocurrency. The country recognizes crypto as legal financial assets, and its trading platforms must register with regulatory bodies like the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Canada enforces anti-money laundering (AML) and know-your-customer (KYC) regulations on crypto platforms. While the government supports innovation in blockchain, it maintains strict oversight to prevent illegal activities. Provincial regulators, like the Ontario Securities Commission (OSC), also play a key role in overseeing crypto exchanges and ensuring compliance.
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