Gemini, a prominent cryptocurrency exchange, has announced the impending launch of Gemini Foundation, a non-US crypto derivatives platform, as the regulatory assault on cryptocurrency exchanges in the US intensifies.
The decision was made after American watchdogs, like the Securities and Exchange Commission (SEC), who have been focusing on exchanges like Binance, Kraken, and Coinbase, increased their inspection.
The first derivatives contract offered by the Gemini Foundation will be a perpetual bitcoin (BTC) contract with a GUSD (Gemini Dollars) value; an ETH/GUSD perpetual contract will be released soon after. The website would make trading in spot and derivative goods available to eligible users in 30 nations, including Singapore, Hong Kong, Brazil, and South Korea. Customers can leverage their crypto assets to control risk, produce returns, get directional exposure, and acquire long or short exposure to the cryptocurrency market.
The Gemini Foundation seeks to offer a safe, dependable, and affordable platform for trading derivatives. With its advanced trading tools and user-friendly interface, the location will serve both seasoned traders and those who are new to the bitcoin industry. The maximum permitted leverage on the platform is 100x, whereas the default is 20x.
The GUSD will serve as the foundation for the platform’s pricing system as well as for all funding contributions. Gemini Foundation has stated ambitions to expand its derivatives offering in the upcoming months, even though the exchange is still in its infancy.
Gemini chose to create a crypto derivatives platform outside of the US at a time when US regulators are tightening their control over the sector. Concerns over the risks associated with cryptocurrencies are growing, and the SEC has started looking into the activities of numerous exchanges. Gemini may create a platform that is not available in the United States to avoid any legal issues.
Gemini is one of the most well-known exchanges in the nation, making the launch of a platform outside of the US significant for the company. Although the feasibility of the platform has not yet been shown, it is clear that businesses are seeking ways to adapt as the Bitcoin industry changes quickly. Gemini chose to construct a platform outside of the US to capitalize on this innovation and grow internationally.
The Securities and Exchange Commission (SEC) earlier in January 2023 accused Genesis, a cryptocurrency exchange controlled by Digital Currency Group, and Gemini of facilitating the trade of unregistered securities. Cameron Winklevoss and Tyler Winklevoss, the company’s co-founders who founded Gemini in 2014, still own the bulk of its shares.
Gemini submitted its application for pre-registration to operate as a cryptocurrency exchange in Canada earlier on April 14, 2023, according to a report. The cryptocurrency exchange said in its blog that it has submitted a pre-registration undertaking to the Ontario Securities Commission to become registered with OSC as a limited dealer.