3 - 5 minute read
Gemini, one of the leading cryptocurrency exchanges, has filed a pre-registration undertaking with the Ontario Securities Commission (OSC) to become a restricted dealer in Canada. This move is necessary for all cryptocurrency exchanges that wish to conduct business in the country. Cynthia Del Pozo Garcia, Gemini’s director of strategy and corporate development, views Canada as one of the most important and developed markets for the company’s international expansion. In light of this news, traders are beginning to analyze the implications of this move on the asset in question.
According to Del Pozo Garcia, Gemini holds many licenses globally, including state money transmitter licenses, an E-Money License from the Financial Conduct Authority in the United Kingdom, and an E-Money License from the Central Bank of Ireland. “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,” said the director. This shows Gemini’s commitment to compliance and regulations while expanding its business across borders.
“As one of the most important and developed markets in the Americas, Canada has played an essential role in Gemini’s international expansion.”
Canada has recently introduced new regulations that require all crypto asset trading platforms to sign a legally binding pre-registration undertaking to continue operating in the country. Among many restrictions, exchanges are not allowed to allow Canadian clients to buy or deposit stablecoins without prior approval from the Canadian Securities Administrators (CSA). The CSA is responsible for overseeing capital markets in the country and requires cryptocurrency exchanges to follow strict rules to protect investors.
The new regulations have led to cryptocurrency exchange OKX announcing that it would cease operations in Canada by June 2023. Meanwhile, fintech company Paxos has also said it would withdraw from Canada, citing regulatory uncertainty. Binance and Kraken have since stated that they filed the pre-registration undertaking required to continue operations in the country. Gemini’s move to file the pre-registration undertaking shows that the company is committed to expanding its business in Canada despite the regulatory hurdles.
The implications of Gemini’s move on the asset in question are positive. This move shows that Gemini is committed to expanding its business across borders, and traders can expect the company to continue to grow as it enters the Canadian market. Additionally, the move shows that cryptocurrency exchanges that are committed to compliance and regulations can navigate the complex regulatory landscape to expand their businesses.
For traders, the implications of Gemini’s move are positive. This move shows that regulatory hurdles can be overcome, and companies that are committed to compliance and regulations can successfully navigate the complex regulatory landscape to expand their businesses across borders. Traders who are bullish on Gemini should continue to hold the asset, as the company continues to expand its business and grow its user base in Canada.
The Bottom Line
Gemini’s move to file a pre-registration undertaking with the Ontario Securities Commission (OSC) to become a restricted dealer in Canada is positive news for the cryptocurrency exchange. The move shows that regulatory hurdles can be overcome, and companies that are committed to compliance and regulations can successfully navigate the complex regulatory landscape to expand their businesses across borders. Traders can expect Gemini to continue to grow as it enters the Canadian market, and those who are bullish on the asset should continue to hold it.