Gemini will discontinue support for all customer accounts in Canada
Gemini will discontinue support for all customer accounts in Canada
Gemini, the U.S.-based cryptocurrency exchange founded by the Winklevoss twins, has announced that it will shut down all customer accounts in Canada by the end of 2024.
The decision comes as the exchange faces mounting regulatory challenges in the country, reflecting a growing trend of global crypto companies reevaluating their operations in regions with evolving regulatory landscapes.
According to Gemini, Canadian clients will have until December 31, 2024, to withdraw their funds and close their accounts. On September 30, the exchange sent out emails to Canadian users warning them that all Canadian accounts will be closed by the end of the year. Thus, users have 90 days to withdraw their assets from the platform. Gemini asked users to transfer their assets to an external wallet address.
The exchange has already stopped accepting new customers from Canada, signaling a gradual wind-down of its operations in the country. This move marks the latest in a series of changes for cryptocurrency exchanges operating in Canada, which has tightened its regulatory requirements for digital asset service providers over the past year.
Gemini’s exit from the Canadian market is believed to be linked to the stricter rules introduced by Canadian regulators. On February 22, the Canadian Securities Administrators (CSA) issued a notice to all cryptocurrency asset trading companies requiring them to sign a legally binding pre-registration obligation to continue operating in the country, TU Crypto News reported.
CSA imposed enhanced compliance measures, requiring crypto exchanges to register as securities dealers and adhere to new guidelines on custody and security protocols. These measures, designed to safeguard investors, have created significant operational and compliance hurdles for international platforms like Gemini, which operate in multiple jurisdictions.
The decision to cease operations in Canada is seen as a strategic move by Gemini to focus on markets with more favorable or clear regulatory frameworks.
For Gemini, which operates in over 60 countries, the exit from Canada may allow the company to consolidate resources and focus on markets where the regulatory outlook is more predictable. However, for Canadian users, the decision represents a significant shift in the accessibility of global crypto services.
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