- Crypto exchange Gemini is winding up operations in Canada.
- The platform has issued a deadline for its users.
- The Canadian crypto market is navigating a major shake-up.
The past few years have seen the Canadian regulatory landscape take a major shift, with authorities within the jurisdiction tightening oversight on its local crypto industry. This has translated into increased pressure on service providers, resulting in penalties and sanctions, and, in some cases, mandatory exits for those unable to meet the new standards required to maintain a presence in the country.
The Winklevoss-twins-owned crypto exchange Gemini is joining the exodus, whose latest move signals an imminent withdrawal from the market.
Gemini Bowing Out of Canada?
Cryptocurrency exchange Gemini is the latest to announce a shift in operations within the Canadian market. In a recent notice to users in the region, the exchange announced its decision to close all customer accounts by the end of the year.
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Gemini emphasized that its decision will impact the majority of users “with limited exceptions,” outlining a strict deadline for account closures and asset withdrawals.
According to the statement, users have a 90-day timeframe starting on September 30, 2024, to cut ties with the exchange. Effective December 31, 2024, all customer accounts will be permanently closed.
Users must withdraw all cryptocurrency assets to an external wallet and transfer any fiat currency to their linked bank accounts before the deadline. Failure to do so will result in permanently losing funds after account closures.
While Gemini did not offer specific reasons for its decision, its actions align with the ongoing trend of exchanges exiting from Canada in response to tightening regulatory standards.
Canada’s Crypto Exchange Exodus
In recent months, several major crypto exchanges have made their exit from the Canadian market, citing an increasingly stringent regulatory environment. In May 2023, Binance, the world’s largest exchange, was the first to bow out of the local market, pointing to the the country’s regulatory requirements as untenable for its operations.
Shortly after Binance’s exit, Bybit also followed suit, ceasing all trading operations and halting new user onboarding. The exchange similarly attributed its decision to evolving compliance requirements, adding Canada to its list of service restricted countries.
Other exchanges including OKX and decentralized exchange dYdX have also departed from the country, echoing similar concerns over the country’s shifting regulatory landscape.
On the Flipside
- Several users have expressed dissatisfaction over Gemini’s decision.
- In April 2024, Coinbase became the first international exchange to obtain an operational license in Canada.
- The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) recently imposed a $4.3 million fine on Binance.
Why This Matters
Gemini’s decision to close most of its users’ accounts signals a likely imminent departure from Canada, positioning the exchange as the next to succumb to mounting regulatory pressure.
Read this article on recent events likely driving the heightening regulatory standards in Canada:
How a Canadian Crypto Exchange’s Founder Gambled Away $9.5 Million of Users’ Bitcoin and Ether
Here’s how the crypto exchange WazirX is targeting recovery following the July hack:
WazirX Buys More Time to Plot Comeback Post-$230M Heist
