Gemini, a leading American cryptocurrency exchange, has announced a significant change that is causing a stir in the Canadian crypto landscape. Users are now given a limited timeframe of 90 days to request their withdrawals in light of this decision.
Gemini will close all customer accounts in Canada, with a few exceptions, effective December 31, 2024, as stated in an email to users. Those relying on Gemini for their digital asset trades may find themselves apprehensive about what this sudden shift means for the future of cryptocurrency trading in Canada.
Regulatory Pressures Lead to Withdrawal
Gemini has decided to cease its services following the introduction of new regulations by the CSA. In a bid to continue operating, the CSA required that all Canadian cryptocurrency trading platforms submit a pre-registration undertaking by February 22, 2024.
The final deadline for compliance requirements has been set for December 31, 2024, following multiple extensions until April 30, 2024. In this context, even after filing their pre-registration on April 13, 2023, Gemini opted to exit the market instead of navigating the forthcoming regulatory hurdles.
Source: Gemini
Similar regulatory pressures have driven other major exchanges like Binance and OKX to exit the Canadian market. This trend indicates that foreign platforms are increasingly wary of adapting to Canada’s evolving regulatory landscape.
The Winklevoss Twins, founders of Gemini. Image: Boston Magazine
Founded by the Winklevoss twins, Gemini once regarded Canada as a critical market for its international growth, as noted by one of their representatives. However, many exchanges are reassessing their commitment to the country amid the more stringent requirements.
Currently, the market cap of cryptocurrencies is $2.4 trillion. Chart: TradingView.com
Customer Concerns and Impact
This announcement has sparked anxiety among Gemini users in Canada, many of whom urgently need to access the significant amounts they have deposited. As stated in Gemini’s email, users are advised to transfer their funds to an external wallet prior to the impending deadline.
Gemini to terminate its Canadian operations by the end of the year due to new regulatory obligations
Crypto exchange Gemini announced it will close all customer accounts in Canada by Dec. 31, 2024, per Cointelegraph. In a Sept. 30 email, Gemini informed its Canadian users they had 90 days…
— CoinNess Global (@CoinnessGL) September 30, 2024
Given the history of withdrawal issues, many users are understandably apprehensive. Numerous customers have previously voiced frustrations about account lockouts and slow response times from customer support.
Those lacking immediate access to their funds, or who are inexperienced in withdrawing assets from exchanges, may experience heightened stress during this withdrawal phase. One frustrated user took to social media to express their intention to “withdraw my funds from Gemini and close my account.”
Gemini Exit: The Future of Crypto in Canada
Gemini’s departure raises questions about the outlook for cryptocurrency trading in Canada. While some exchanges are complying with regulations and remaining active, others are completely leaving the market. This trend may lead to a narrower selection of platforms available to Canadian traders and investors in the future.
Image sourced from Pexels, chart provided by TradingView
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