Gemini Attempts to Acquire a License in Canada: Details
- Crypto firm Gemini has filed a pre-registration undertaking with the Ontario Securities Commission and plans to get licensed to operate in the country.
- The pre-registration is a must if a company wants to set up operations in Canada as per the earlier guidelines from the Canadian Securities Administrators.
- “Canada has played an essential role in Gemini’s international expansion,” said Cynthia Del Pozo Garcia, a Gemini executive.
- Blockchain infrastructure platform Paxos and decentralized crypto exchange dYdX announced their withdrawals from Canada earlier this week.
The usage of cryptocurrencies in Canada has surged significantly post-2019, as per blockchain data platform Chainalysis, and many crypto companies have moved their operations there. However, the authorities have become increasingly strict when it comes to crypto regulation following the collapse of multiple companies in 2022, and as a result, a firm has to sign legally binding documents before setting up operations in the country. Interestingly, popular crypto exchange Gemini has filed a pre-registration undertaking with the Ontario Securities Commission (OSC).
The pre-registration is a must if a company wants to set up operations in Canada as per the earlier guidelines from the OSC, which oversees capital markets in Canada’s most populous province. Gemini announced that it had filed the pre-registration undertaking and hoped to work with the OSC and other regulators to establish operations in the region and become “a restricted dealer with the OSC.”
Cynthia Del Pozo Garcia, the director of strategy and corporate development at Gemini, noted that “as one of the most important and developed markets in the Americas, Canada has played an essential role in Gemini’s international expansion,” while adding:
“Since its inception eight years ago, Gemini has worked with regulatory stakeholders and lawmakers to help shape thoughtful regulation that fosters both consumer protection and innovation. We will continue to do this work. We have spent considerable time applying for and becoming licensed, registered, and otherwise regulated in various jurisdictions across the world.”
It is important to mention here that Gemini does hold many licenses from regulators around the world, like the E-Money License from the Financial Conduct Authority in the United Kingdom and from the Central Bank of Ireland. The director noted that the crypto exchange must “undergo annual audits of our financial statements and is subject to bank examinations conducted by the New York Department of Financial Services (NYDFS),” as a part of its licensing requirements.
Last year, speaking at the Economic Club of Canada, OSC Chief Executive Officer Grant Vingoe highlighted that their previous research indicates that over 30 percent of Canadians plan to purchase digital assets as a speculative instrument in the coming years. With a population of approximately 38 million, Vingoe implies that over 11.4 million Canadians intend to purchase crypto assets next year.
Due to this sudden surge in the popularity of digital assets, the Canadian Securities Administrators (CSA) published a notice requiring all the crypto platforms planning to enter the region to sign a legally binding agreement, and among many restrictions, these companies were asked to prohibit Canadians from buying or depositing stablecoins without prior approval from the CSA.
Following the onset of the strict regulatory regime in Canada, blockchain infrastructure platform Paxos announced earlier this week that it would withdraw from the country and stated that it will re-enter the market at a later date. Users of the platform will not be able to continue their transactions starting June 2, but withdrawals will remain live.
On the other hand, the popular decentralized exchange (DEX), dYdX, also confirmed that it will be winding down its operations in the country. due to regulatory issues. Existing users of the dYdX crypto trading platform will have their accounts suspended on April 14 at 17:00 UTC.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
