Heads up, Canada! Gemini, the crypto exchange brainchild of the Winklevoss twins, is packing up and saying goodbye to the Great White North. By December 31, 2024, all Canadian accounts will be history, so you've got until then to move your funds.
This move comes hot on the heels of other big names like OKX, Paxos, Bybit, and Binance, who have already waved farewell to Canadian shores.
In an email sent out on September 30, Gemini gave the heads-up that accounts will be closing by the year's end, giving users a 90-day window to withdraw their assets. “Effective December 31, 2024, Gemini will be shutting down all customer accounts in Canada with a few exceptions. So, if you're a Gemini user, it's time to start planning your exit strategy,” the email read.
So, why the sudden exit? Well, it’s all about the new rules laid down by the Canadian Securities Administrators (CSA). Earlier this year, on February 22, the CSA rolled out new regulations requiring crypto trading platforms to sign a pre-registration undertaking (PRU) to keep operating. These new rules also put the squeeze on stablecoins, making it tough for Canadians to buy or deposit them without the CSA’s green light.
This regulatory shake-up follows a string of high-profile crashes in the crypto world, like Voyager Digital, Celsius Network, FTX, BlockFi, and Genesis Global. The CSA says the new rules are all about upping the ante on investor protection.
As part of this regulatory overhaul, a deadline of April 30, 2024, was set for crypto trading platforms to get their ducks in a row. After this date, platforms couldn't let clients buy, deposit, or engage in contracts for value-referenced crypto assets (VRCAs) tied to a single fiat currency unless they played by the new rules. This deadline got bumped to October 31, 2024, and now to December 31, 2024, giving platforms a bit more breathing room to comply or come up with alternative solutions.
Initially, Gemini was all in on the new regulations. In April, they filed their pre-registration on the 13th, with a spokesperson even calling Canada “one of the most important and developed markets in the Americas” and crucial to Gemini's global growth. Other exchanges like Kraken and Binance also jumped on the PRU bandwagon.
But the love affair didn't last. Binance flipped the script and announced its exit in May. OKX, Paxos, Bybit, and dYdX soon followed suit, leaving the Canadian market in the wake of the new regulatory landscape.
So, Canadian crypto enthusiasts, it's time to get moving and make sure your assets find a new home before Gemini shuts its doors for good!
