- The SEC’s attack on crypto could be driving business abroad.
- Gemini, a U.S.-based exchange, plans to open a new office in India.
- A venture capitalist says the SEC’s crypto enforcement efforts hurt U.S. innovation.
The United States crypto regulatory landscape is uncertain as Congress is yet to deliver a comprehensive regulatory framework. The situation worsens as regulators like the U.S. Securities and Exchange Commission (SEC) remain bent on asserting jurisdiction over crypto markets through enforcement.
Lingering uncertainty and fear of SEC enforcement have led to growing concerns that U.S.-based crypto businesses could focus efforts abroad. In the latest instance, one of the leading U.S.-based crypto exchanges, Gemini, announced plans to expand its growing list of international offices amid a legal tussle with the SEC.
This year, Gemini was among the first crypto firms to land in the markets regulator’s crosshairs. In January, the SEC charged the crypto exchange with breaking U.S. Securities laws, alleging that its “Earn Program” was an unregistered securities offering.
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Announcing plans for an expansion in India, Gemini says the proposed facility will be its second-largest engineering facility behind the one in the U.S.
“Big Plans for International Growth”
Gemini has revealed plans to launch its fourth international office in Gurgaon, India, in a company blog post on Thursday, April 20. The Gurgaon office is set to serve as a hub for engineering and design. The facility will join other international offices in the United Kingdom, Ireland, and Singapore.
The crypto exchange revealed that it is already hiring staff for the Gurgaon office, adding that the Gurgaon office has open roles in engineering, product management, human resources, finance, support, and compliance.
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The revelation of Gemini’s Indian expansion follows the announcement of Chief Technology Officer Pravjit Tiwana’s new role as chief executive officer of Gemini in the Asian Pacific (APAC) region. In that announcement, Gemini said it had “big plans for international growth this year in APAC.”
In March, The Information reported that Gemini planned to launch an international derivatives exchange. But they weren’t alone, Coinbase, another leading U.S.-based crypto exchange, has also revealed similar plans after obtaining a license in Bermuda. Both derivatives exchanges will allow for the trading of perpetual contracts, which is prohibited for retail investors in the U.S. due to regulatory restrictions.
Lack of Regulatory Clarity Driving Firms Abroad
U.S.-based crypto businesses like Gemini and Coinbase have long decried the lack of a crypto regulatory framework in the U.S., arguing that the SEC’s approach would force businesses abroad.
In a Twitter post on April 20, Gemini CEO Tyler Winklevoss asserted that the U.S. is “being left behind” in crypto innovation. He said this in response to news that the European Union Parliament had approved the Markets in Crypto-Assets (MiCA) bill.
Speaking at the U.K.’s Fintech Week, Coinbase CEO Brian Armstrong disclosed that the crypto exchange is open to moving its headquarters to the U.K. On April 17, he praised the U.K.’s approach toward crypto regulation.
Coinbase, like Gemini, is also in the SEC’s crosshairs. The crypto exchange confirmed the receipt of a Wells notice over unspecified listed assets, its staking service, its “Earn” program, Coinbase Prime, and its self-custody wallet in March.
Cinneamhain Ventures Partner Adam Cochran recently opined that the SEC’s affront on crypto had wide-reaching effects on U.S. innovation. The Venture Capitalist said that Fintechs seeking to fund now list their U.S. Operations as an investment risk while emphasizing international operations.
According to Cochran, this was not the case before Gary Gensler took over as SEC chair.
On the Flipside
- Gemini is not moving its crypto exchange business to India.
- Indian regulators remain hostile to the crypto industry and have considered a blanket ban in the past.
Why You Should Care
The U.S. risks falling behind in crypto advancement as crypto businesses look to focus efforts abroad.
To learn more about the U.S. SEC’s stance on crypto, read this:
SEC Chair Gensler Urges Crypto Exchanges to Comply: Summary Rundown of Testimony
The EU Parliament has passed a crypto regulatory framework; read here:
The EU Parliament Approves MiCA – Here’s What It Means for the Crypto Industry
