Gemini, a cryptocurrency exchange based in New York, said it would cease all its customer activities in Canada by the end of 2024. The exchange has encouraged its Canadian users to get their funds out in the next 90 days, as the deadline has been set for December 31, 2024. It follows fresh rules set by Ottawa, which lay down more stringent requirements for any crypto business that wants to operate in the country.
On Monday, Gemini emailed its users in Canada informing them that the platform would discontinue services soon. To minimize risks, it urged users to withdraw their crypto assets to external wallets and exchange fiat money for bank accounts before the specified time. The email also included detailed instructions on how to transfer funds and guidance for those without bank accounts, ensuring that users can complete the process smoothly.
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New Regulatory Guidelines Prompt Exit
These changes in the Canadian market prompted Gemini to withdraw its operations from the country. On February 22, 2023, the membership of CSA put in place new regulations for cryptocurrency exchanges, as highlighted below. According to these rules, all unregistered crypto trading platforms must provide a ‘pre-registration undertaking’ to their equivalent main regulator within 30 days to legally carry out business.
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This pre-registration commitment is mandatory, and its purpose is to guarantee that crypto platforms operate within the parameters outlined in Canadian legislation. Those who do not conform to those requirements must suspend their operations, while users must unload the funds. These rules have compelled Gemini to shut down its operations in Canada.
Gemini’s exit is the latest development in a series of regulatory actions targeting cryptocurrency exchanges across Canada. As the exchange prepares to leave the market, it has prioritized user communication, urging customers to take swift action to secure their funds before the platform officially ceases operations in the country.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.