Crypto exchange Gemini has announced plans to cease operations in Canada by the end of 2024, according to a September 30 email sent to its customers.
The email stated:
“Effective December 31, 2024, Gemini will close all customer accounts in Canada, with limited exceptions. As a result, we will close your Gemini account.”
Customers have until the end of the year (90 days from September 30) to withdraw their assets from the crypto platform.
Why is Gemini leaving Canada?
Gemini hasn’t given detailed reasons for his decision, but his move is consistent other crypto companies that have recently exited Canada.
Over the past year, prominent companies such as Binance and Paxos have also exited the Canadian market, citing regulatory challenges. These deviations followed the Canadian government’s introduction of stricter regulations for crypto exchanges.
In February, the Canadian Securities Administrators (CSA) issued a directive requiring all platforms to sign a pre-registration undertaking (PRU) to continue operations. The CSA emphasized that these measures are intended to protect investors, citing the 2022 insolvencies of Voyager, Celsius and FTX. The regulations include restrictions on how exchanges interact with customers, such as banning Canadian users from trading stablecoins without approval from the CSA.
Gemini initially complied, signed the PRU and completed its submission. At the time, the exchange viewed Canada as an important market for international expansion. So the sudden decision to leave has taken industry observers by surprise.
Gemini did not respond Crypto Slates request for comment as of press time.
Crypto regulations
Meanwhile, Gemini’s departure coincides with Canada’s securities regulator extending the compliance deadline for crypto platforms until the end of 2024.
Initially set for October, the new deadline gives exchanges more time to meet regulatory requirements or propose safer alternatives. Failure to comply may result in fines, including the restriction of specific products for Canadian users.
According to the regulator’s website, only a few platforms, such as Kraken and Coinbase, continue to operate under these stricter regulations.
