Gemini, the cryptocurrency exchange founded by the Winklevoss twins, has announced that it will close all customer accounts in Canada effective December 31, 2024. This decision was communicated to Canadian users via email on September 30, giving them a 90-day window to withdraw their assets from the platform.
In its email, Gemini 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.” This move represents a significant turnaround for Gemini, which previously viewed the Canadian market as a strategic avenue for international expansion.
Gemini's decision follows a series of regulatory changes implemented by Canadian financial authorities. In February 2023, Canadian securities regulators mandated that all Crypto Trading Platforms (CTPs) operating in the country must execute a pre-registration undertaking—a legally binding commitment to continue providing services.
Gemini had complied with this requirement by filing a pre-registration in April, with company officials emphasizing the importance of the Canadian market. However, the evolving regulatory landscape has posed challenges for many international exchanges.
Gemini's exit is part of a broader trend of international cryptocurrency exchanges retreating from Canada amid increased regulatory scrutiny. Between March and May of this year, several top platforms, including OKX, Bybit, dYdX, Paxos, and Binance, also ceased operations in the country, citing similar regulatory challenges.
The Canadian Securities Administrators (CSA) has been particularly active in tightening regulations for cryptocurrency platforms, enforcing stricter compliance measures that have affected market participation.
In addition to the closures, the CSA has postponed the deadline for stablecoin compliance. New rules concerning value-referenced crypto assets (VRCAs) will limit the use of stablecoins not pegged to a single fiat currency. The final enforcement of these rules is scheduled for April 2024, further complicating the operational landscape for exchanges operating in Canada.
Gemini's decision to close its Canadian operations underscores the mounting regulatory pressures faced by cryptocurrency exchanges in the region. As international platforms reassess their presence in Canada, users are advised to withdraw their assets before the December deadline. The shifting regulatory environment highlights the ongoing challenges within the crypto sector, raising questions about the future of digital asset exchanges in Canada.
October 2024, Cryptoniteuae