On April 12, the crypto exchange, Gemini, filed for a pre-registration undertaking with the Ontario Securities Commission (OSC). The process is mandatory for all digital asset platforms that wish to continue operating in Canada.
Canada has played an essential role in Gemini’s international expansion. By providing a pre-registration undertaking to the Ontario Securities Commission (OSC), we are taking a key step in our application to register as a restricted dealer with the OSC.
We are glad to show our… pic.twitter.com/eStEz35u5o
— Gemini (@Gemini) April 12, 2023
However, Gemini’s director of strategy and corporate development, Cynthia Del Pozo Garcia, has asserted that:
As one of the most crucial and developed markets in the Americans, Canada has played a significant role in Gemini’s international expansion.
Gemini has been working closely with regulators and authorities in Canada since its launch. Additionally, this partnership has enhanced the spread and adoption of cryptocurrencies worldwide. Further, the exchange has set an example for other crypto platforms by engaging with regulatory authorities. As Gemini demonstrates its commitment to protecting its users against crypto-related crimes, the company has helped build a secure, more trustworthy digital asset market.
Del Pozo Garcia has further added that Gemini “holds licenses globally.” Some include an E-money license from the Central Bank of Ireland, a state money transmitter license, and an E-money license from the Financial Conduct Authority in the United Kingdom.
The director added that” related to our licenses, Gemini must undergo annual audits of our financial statements and is subject to bank examinations conducted by the New York Department of Financial Services.”
Gemini’s Approach to regulatory compliance
Gemini’s approach to regulatory compliance has led to the overall legitimacy of the crypto ecosystem. As a result, most users have felt more comfortable investing in digital assets, enabling the market’s growth.
Nonetheless, Gemini’s decision to register in Canada indicates that the platform is willing to serve retail users. Further, the platform’s website shows that its exchange is available in Canada, with support for trading pairs involving Canada Dollar (CAD) as well as other assets. Notably, Gemini has emphasized its institutional services, noting that it acts as a sub-custodian to Canadian cryptocurrency exchange-traded funds (ETFs). This is notable, as Canada has already approved crypto spot ETFs.
On the other hand, the Canadian Securities Administrators (CSA) published a notice in February requiring all crypto trading platforms to sign a legally binding pre-registration undertaking to continue operating in Canada. Among the many stated restrictions, the crypto firms will be prohibited from allowing Canadian clients to buy or deposit stablecoins without approval from the CSA. The notice further read:
In light of recent insolvencies involving numerous CTPs, including Celsius Network, the FTX Group of companies, Voyager Digital, Genesis Global, and BlockFi, we are introducing important new investor protection provisions into the standard form of PRU.
#cryptocurrency #crypto #cryptonews
Canadian Securities Administrators may intend to tighten rules for cryptocurrency exchanges later this month. pic.twitter.com/wSytpVZnFq
— Cryptocurrencies Agency (@alsayedomar1252) February 17, 2023
Crypto firms trying to Stay in Canada.
However, Gemini is one of many platforms trying to fight for its stay in the country. Other competing firms, including Coinbase, Binance, Kraken, and Crypto.com, have intended to stay in Canada by filing the same pre-registration.
In March, Binance filed its pre-registration undertaking to adjust its operations in the country. However, the previous year, it was speculated that Binance might leave the country due to its difficulties with the Canadian province of Ontario.
On the other hand, some platforms have withdrawn entirely from Canada. Paxos recently revealed that it would no longer serve Canadian clients to strict regulations. Additionally, dYdX revealed its closure to servicing Canadian users. The company has already stopped onboarding new clients from the country. All Canadian users will be transitioned to close-only mode from April 14. Other companies, including OKX and Blockchain.com, have already ceased servicing Canadian users.
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