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Renowned crypto exchange Gemini has announced its plan to cease operations in Canada, giving users until December 31, 2024, to withdraw their funds. In a recent email sent on September 30, Winklevoss twins-founded exchange notified Canadian users that all accounts will be closed by year-end due to new regulatory challenges.
This decision comes after a series of tightened regulations from Canadian financial authorities, aimed at strengthening the rules governing crypto exchanges and safeguarding investors.
Regulatory Pressure Forces the Exit
The closure is largely influenced by rules introduced by the Canadian Securities Administrators (CSA), which in February 2024 required crypto asset trading platforms to sign a legally binding pre-registration undertaking (PRU) to continue operating.
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Among these new regulations, crypto exchanges were restricted from facilitating stablecoin transactions for Canadian clients without approval from the CSA. Despite these obstacles, Gemini initially complied with the requirements, filing its pre-registration on April 13 and publicly stating that Canada played a crucial role in its international growth strategy.
However, as the year progressed, the challenges tied to the new regulations seemingly outweighed the benefits, leading Gemini to reevaluate its presence in the country.
Users affected by the closure are advised to withdraw their assets before the December 31 deadline to avoid any complications.
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Gemini Follows Other Major Exits from Canada
Gemini’s exit from Canada mirrors a broader trend of crypto exchanges leaving the Canadian market. Renowned crypto exchange Binance announced its departure from Canada in May 2024, despite initially filing the necessary pre-registration. Other exchanges like dYdX also withdrew from the country, citing regulatory burdens.
While some platforms are leaving, others are finding opportunities in Canada’s new regulatory environment. Coinbase successfully secured a restricted dealer license from the CSA in April, signaling its intention to expand in Canada and meet the evolving demands of Canadian regulators.
For Canadian crypto users, Gemini’s decision is another chapter in the ongoing story of how increased regulation is reshaping the digital asset landscape. As financial authorities continue to prioritize investor protection, the departure of international exchanges like Gemini and Binance may pave the way for a more restricted yet secure market for crypto trading in Canada.
