Canadian users will lose access to Gemini’s services by 2024. On September 30th, the company emailed its Canadian users to suggest they withdraw their assets within 90 days. This decision results from Canada’s strict new laws concerning regulating cryptocurrency exchanges.
New guidelines from the Canadian Securities Administrators (CSA) in February 2023 require crypto exchanges to complete a pre-registration declaration (PRU) to keep operating within Canada.
Exchanges must also gain CSA permission to provide stablecoins to Canadian customers. Due to the tough regulations, several key crypto exchanges have departed the market.
Gemini agreed to the rules and registered its pre-registration in April 2023. Despite its commitment to Canadian operations, the firm has elected to depart entirely from the market. By the end of December 31st, 2024, most Gemini accounts in Canada will be shut down.
Gemini and Other Crypto Platforms Exit Canada
Gemini’s exit reflects a rise in decentralized platforms abandoning Canada because of compliance challenges. Some firms initially submitted pre-registration forms but later changed their views after examining the new regulations. In May 2023, Binance stated it would withdraw from the Canadian market after signaling its earlier readiness to adhere to regulations.
Moreover, services from dYdX and Bybit have ended their operations in Canada. In response to significant crypto exchange failures, the CSA has increased its oversight to safeguard investors. Due to this situation, exchanges within the country deal with many constraints, such as restrictions on stablecoin use.
The CSA rolled out these strategies after major crypto Platforms like FTX and Celsius Network failed. The regulator aims to ensure that Canadian investors are secured and new financial failures are mitigated. Consequently, many exchanges have chosen to relocate outside the country.
Ohio Pushes for Cryptocurrency in Tax Payments
As regulations around cryptocurrency become stricter in Canada, Ohio strives to accept it. On September 30, Ohio State Senator Niraj Antani launched a bill requiring the state to receive cryptocurrency for tax and fee payments. According to the bill, state institutions and pension funds can now invest in cryptocurrency.
Each year, the Ohio tax commissioner will determine the eligible cryptocurrencies for use in these transactions according to the proposed law. The bill does not consider central bank digital currencies (CBDCs) cryptocurrencies. Entities within the state can apply service charges to process crypto transactions according to the bill to boost digital asset adoption.
In 2018, Ohio tried to use cryptocurrency for tax payments, but this effort was stopped. Ohio has made fresh attempts to control and embrace cryptocurrency within its regulations. These proposals contain extra measures to defend the state’s crypto-mining business and remove CBDCs from state monetary regulations.
