Gemini, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, is reportedly planning to exit the US market due to increasing regulatory pressure from American authorities. The company has declared its intention to launch the Gemini Foundation, a non-US crypto derivatives platform that will provide crypto holders in Hong Kong, El Salvador, Israel, and Turkey with the ability to place bets on the future price of cryptocurrencies.
Gemini has SOC I Type 2 and SOC II Type 2 security certificates that allow it to operate as a trustworthy custodian. The company has also passed audit checks that confirm its clients’ digital assets are stored separately. However, despite these measures, American regulators, including the SEC, have continued to impose fines, lawsuits, and bans on digital assets, leading Gemini to look into foreign markets.
The regulatory landscape for cryptocurrency in the US is currently confusing, with unclear rules and harsh enforcement actions from regulatory authorities. Gemini’s decision to exit the US market follows similar moves by other major players in the industry, including Coinbase, Bittrex, and Kraken, who have also faced regulatory pressure and have chosen to expand their operations in foreign markets.
Gemini’s move to exit the US market is expected to have significant implications for the industry, as it marks a shift in the dominance of the American market in the cryptocurrency industry. If the current regulatory pressure continues, Binance US may become the only major player left in the US crypto market by the end of 2023.
Gemini has not yet announced a timeline for its exit from the US market. Still, the launch of Gemini Foundation and its plans to enter foreign markets suggest it is already taking steps to diversify its operations and reduce its dependence on the American market.
