Gemini, the cryptocurrency exchange founded by the Winklevoss twins, has reportedly informed its Canadian users that it will cease operations in the country by December 31, 2024.
This follows the departures of OKX, Paxos, Bybit, and Binance from the Canadian market.
Users Given 90 Days to Withdraw Assets
In a September 30 email to users, the exchange stated that all accounts would be closed by the end of the year, giving them 90 days to withdraw their assets.
“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,” the company said.
Gemini’s exit from the country comes in response to the regulatory changes introduced by the Canadian Securities Administrators (CSA) earlier this year. On February 22, the agency issued a notice mandating that crypto trading platforms sign a pre-registration undertaking (PRU) to maintain their operations.
These regulations also impose restrictions on stablecoins, preventing Canadian clients from purchasing or depositing them without prior approval from the CSA.
The new framework follows a series of high-profile insolvencies in the crypto sector, including Voyager Digital, Celsius Network, FTX, BlockFi, and Genesis Global. According to the CSA, the rules were implemented to increase investor protection.
As part of this mandate, a deadline of April 30, 2024, was established for registered crypto trading platforms (CTPs). After this date, these platforms would be prohibited from allowing clients to buy, deposit, or enter into contracts for value-referenced crypto assets (VRCAs) tied to a single fiat currency unless they adhere to the requirements outlined in the notice.
This deadline was initially extended to October 31, 2024, and has now been further postponed to December 31, 2024, giving CTPs more time to either comply or propose alternatives to address investor protection issues.
Major Exchanges Exit from Canada
Gemini initially responded positively to the new requirements. In April, the company filed its pre-registration on April 13, with a spokesperson emphasizing that Canada was “one of the most important and developed markets in the Americas” and had played an “essential role in Gemini’s international expansion.” Other exchanges, such as Kraken and Binance, also submitted theirs following the CSA’s mandate.
However, some, like Binance, later reversed their decision, announcing their departure from the country in May. OKX, Paxos, Bybit, and dYdX also left the Canadian market after the regulator enacted the new requirements.