- Gemini Canadian accounts will be closed due to new crypto regulations.
- Users had a ninety-day window to withdraw assets from the platform.
The cryptocurrency exchange Gemini, run by the Winklevoss brothers, announced the closure of all customer accounts in Canada. The decision follows the recent Canadian Securities Administrators (CSA) tightened regulations for crypto exchanges and trading platforms operation in the country.
The exchange informed the Canadian users through email notice on September 30 that it would close all accounts in Canada by December 31. Moreover, they announced to the users that they had a ninety-day window to withdraw assets from the platform. Gemini asked its users to shift their assets to an external wallet address.
Besides, on February 22, 2023, the Canadian Securities Administrators (CSA) initiated a notice requiring all crypto trading exchanges to sign a legally binding pre-registration undertaking to continue operating in the country. Consequently, top exchanges, including Binance, Bybit, and OKX, have announced their departures from the country.
However, Gemini filed its pre-registration on April 13, 2023, before deciding to exit the Canadian market. Meanwhile, ByteX, Crypto.com, Uphold, and Kraken have submitted the enhanced pre-registration commitments (PRU) and have completed the review. Although the CSA stated that it does not mean that the platform will be granting registration.Â
Canada’s Stablecoin Compliance
The Canadian Securities Administrators (CSA) has extended the stablecoin compliance deadline for the crypto trading platforms from October 31, 2024, to the end of 2024. The exchanges are advised to meet transparency in operations, clear disclosure of the assets backing stablecoins, and investor security.
On the other hand, the CSA introduced restrictions on value-referenced crypto assets (VRCAs) in early 2023. It prohibits any stablecoin that is not backed by single fiat currencies. However, stablecoins backed by fiat currencies were allowed to trade until the new regulations took effect, until it activated the rules on April 30, 2024.
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