Gemini’s Bold Move into Canadian Markets
On April 12, Gemini, a well-known cryptocurrency exchange, took a significant step by filing a pre-registration undertaking with the Ontario Securities Commission. This move is crucial for any cryptocurrency exchange looking to operate in Canada, as it is a mandatory precursor for becoming a restricted dealer in the country’s lucrative market.
Canada: The New Frontier for Cryptocurrency
Cynthia Del Pozo Garcia, the director of strategy and corporate development at Gemini, emphasized the importance of Canada, calling it “one of the most important and developed markets in the Americas.” Although snow might be falling, business opportunities are thriving!
Gemini’s Impressive Licensing Portfolio
With licenses spanning the globe, Gemini’s credibility is fortified through various licenses, like:
- State money transmitter licenses in the U.S.
- E-Money License from the UK’s Financial Conduct Authority
- E-Money License from the Central Bank of Ireland
According to Del Pozo Garcia, these licenses require Gemini to undergo annual audits and comply with rigorous examinations from the New York Department of Financial Services—keeping things above board and frost-free.
Who’s in, Who’s Out: The Canadian Crypto Landscape
Since the Canadian Securities Administrators (CSA) introduced a new notice on February 22 mandating all crypto platforms to sign a legally binding pre-registration undertaking, the landscape has changed drastically. The notice was partly a response to disastrous insolvencies involving platforms like Voyager Digital, Celsius, and FTX. Cryptocurrencies might be volatile, but regulators are clearly not playing with fire.
Exits and Entrances: The Impact of New Regulations
As the dust settles on the new regulations, some exchanges are circling the wagons. For instance, OKX has announced it would stop operations in Canada by June 2023, and Paxos is also bowing out due to regulatory uncertainty. Meanwhile, competitors like Binance and Kraken are keeping themselves in the ring by filing the necessary documentation to remain operational. It seems the Canadian crypto market has become a high-stakes game!
