Gemini has announced its withdrawal from the Canadian market, giving users until December 31, 2024, to withdraw their funds.
This decision comes in response to increasingly stringent regulatory requirements imposed by Canadian financial authorities aimed at enhancing oversight of crypto exchanges and protecting investors.
The U.S. headquartered crypto exchange informed its Canadian users via email about the impending closure of their accounts. The message, which has been circulating on social media, states:
“Hi there. Effective December 31, 2024, Gemini will close all customer accounts in Canada with limited exceptions. As a result, we will be closing your Gemini account. … We are reaching out to let you know that you will have 90 days starting on September 30, 2024 to remove your assets from Gemini’s platform. Please withdraw your assets by December 31, 2024, as Gemini will close your account after that date.”
This move follows recent regulatory changes implemented by the Canadian Securities Administrators (CSA). The new regulations require crypto asset trading platforms to sign a pre-registration undertaking (PRU) to continue operations in Canada. Additionally, Canadian crypto exchanges must now obtain CSA approval for processing stablecoin transactions.
Gemini had initially shown commitment to the Canadian market, submitting its pre-registration on April 13 and emphasizing Canada’s importance in its global expansion plans. However, the exchange has now joined a growing list of cryptocurrency platforms exiting the Canadian market due to regulatory challenges. Notable departures include Binance, which announced its withdrawal in May 2024, and dYdX, among others.
While some platforms are leaving Canada, others see new opportunities emerging elsewhere. Hong Kong officials, for instance, are actively trying to attract Canadian crypto and Web3 startups. Emily Mo, director of the Toronto ETO, highlighted Hong Kong’s appeal as a top location for tech firms during the Collision 2024 tech conference in Toronto.
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