Gemini to Leave Canada by 2024
Gemini, a leading crypto exchange, plans to stop operations in Canada by the end of 2024. The company shared this decision with customers in an email on September 30.
The email 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.”
Customers need to withdraw their assets within 90 days, with the final deadline set for December 31, 2024.
Why is Gemini Leaving Canada?
Gemini has not provided a detailed explanation, but this decision follows a trend. Several other crypto companies have left the Canadian market recently, citing regulatory difficulties. Firms like Binance and Paxos also exited Canada due to these challenges.
Regulatory Hurdles for Crypto Firms in Canada
In February, the Canadian Securities Administrators (CSA) introduced stricter regulations. These rules require platforms to sign a pre-registration undertaking (PRU) to continue operations. The CSA designed these regulations to protect investors, pointing to the collapses of Voyager, Celsius, and FTX in 2022.
The new rules limit certain activities, like trading stablecoins, without specific CSA approval. Initially, Gemini complied by signing the PRU and filing the necessary documents. The exchange saw Canada as a crucial market for its global growth, making the sudden exit unexpected.
Gemini has yet to respond to CryptoSlate’s request for comments.
Extended Deadline for Crypto Platforms in Canada
Gemini’s departure comes as Canadian regulators extended the compliance deadline for crypto platforms to the end of 2024. Initially, the deadline was set for October. This extension gives exchanges more time to meet the requirements or propose safer alternatives for users.
Non-compliance could result in penalties, including the restriction of certain products for Canadian users. Kraken and Coinbase are among the few platforms that continue operating under these new regulations.
The post Gemini to exit Canadian market by end of 2024 amid regulatory shifts appeared first on CryptoSlate.
