Gemini, the cryptocurrency exchange founded by the Winklevoss twins, is shutting down its Canadian operations. 

According to reports from various news outlets, the closure will take effect on December 31, 2024. This move follows similar exits by major exchanges like Binance and OKX, prompted by strict new regulations from the Canadian Securities Administrators (CSA). 

Should investors be worried about this disturbing trend?

Let's breakdown the key points:

  • Gemini will shut down its Canadian operations by December 31, 2024, urging users to withdraw assets within 90 days.
  • The decision follows stringent new regulations from the Canadian Securities Administrators (CSA) requiring pre-registration and limiting stablecoin transactions.
  • Major exchanges like Binance and OKX have previously exited Canada due to similar regulatory pressures.
  • The CSA's regulations aim to enhance investor protection following recent high-profile crypto insolvencies.
  • Gemini's withdrawal raises concerns about the availability of cryptocurrency trading options for Canadian users.

In an email sent to users on September 30, Gemini announced, “Effective December 31, 2024, we will close all customer accounts in Canada.” They urged users to withdraw their assets within 90 days. 

Gemini’s exit follows CSA's new regulations where crypto platforms are required to sign a pre-registration undertaking (PRU) and impose limits on stablecoin transactions. Additionally, exchanges are required to provide daily financial data and seek approval before offering certain services, particularly for stablecoins.

All these new rules have created a complicated landscape that has driven many exchanges, including Gemini, to reconsider their operations in Canada. However, to their defense, the CSA claims the regulation was enacted to enhance investor protection, especially after high-profile failures like FTX and Celsius.  

Notably, the exit by Gemini is not a first but part of a trend where major crypto exchanges are closing down operations in Canada. Binance exited the Canadian market in May 2023, stating that “new guidance” made it “no longer tenable” to operate there. OKX followed suit, raising concerns about the future of cryptocurrency trading in Canada. 

Despite all these developments, it's important to note that most exchanges still view Canada as a key market for their international expansion. “We are confident that we will someday return to the market when Canadian users can access a broader suite of digital assets,” Binance shared on X.

These tightening regulations will cause panic among Canadian crypto enthusiasts and investors. Most expert analysts also fear that these measures could stifle innovation and limit access to digital assets in the country. 

As Gemini prepares to exit, Canadian users face fewer options for accessing cryptocurrency services. However, it seems like this would be the time for Decentralized exchanges to shine. 

One concerned user tweeted on X:

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