Gemini crypto exchange decided to expand its reach & services via new crypto derivative services but ditched the US crypto market.
Gemini is an averagely popular America-based crypto exchange. This exchange was founded by Cameron and Tyler Winklevoss in 2014. At present, the services of this exchange are available in the United States, Canada, the United Kingdom, South Korea, Hong Kong, and Singapore.
On 22 April 2023, the Gemini crypto exchange announced that Gemini Trust Company will establish a non-US crypto derivative platform.
“Gemini Foundation will allow eligible customers to leverage their crypto assets to achieve long or short crypto exposure agesignage risk, generate returns, and gain directional exposure,” the announcement read.
Gemini’s first derivatives contract will be a BTC perpetual contract denominated in Gemini dollars.
Lack of Crypto laws clarity in America
Recently the European Union (EU)’s crypto agency the Markets in Crypto Assets (MiCA) grabbed full vote support in the EU. In short, MiCA grabbed green signal in the EU to impose its newly designed crypto regulation framework in EU member states by mid of 2024.
Gemini co-founder Tyler noted that the EU is working to bring full clarity on the rules & regulations in the crypto sector via the dedicated crypto unit MiCA but on the other side, the American government agencies are fighting each other & refusing to provide even basic clarity.
This is probably the reason why Gemini is not considering providing its new derivative services in the US. In the last few months, the US Securities and Exchange Commission (SEC) agency brought several enforcement actions against top crypto companies over violation of securities law but failed to provide proper clarity on the violation perfectly.
Recently SEC chairman Gary Gensler responded to the enforcement actions against crypto companies & said that it is not about clarity on the laws, it is about the mistake that crypto companies are making in this market. Indirectly Gensler suggested crypto companies to not to do business in crypto sector because there is no crypto law.