Gemini Implements Transfer Restrictions in the UK
Gemini’s UK branch has announced that starting November 17, it will only allow cryptocurrency transfers to and from entities registered with the Travel Rule Universal Solution Technology (TRUST). This move is in line with the Travel Rule regulations, which require Virtual Asset Service Providers (VASPs) to exchange sender and receiver information during cryptocurrency transactions. Gemini’s decision aims to comply with the UK’s strict application of the Travel Rule and enhance transparency of transactional data while preventing fraudulent activities in the digital asset sphere.
Outgoing and Incoming Transfer Restrictions
Gemini will only permit outgoing transfers of Bitcoin and other cryptocurrencies to a list of 58 TRUST-registered companies, including major names like Anchorage, Binance.US, BitGet, BitGo, Coinbase, and Circle. Additionally, incoming transfers from non-TRUST VASPs will face restrictions starting in December, with Gemini warning of potential account freezes or limitations for such transactions.
Gemini Adapts to Evolving Regulatory Landscape
This move is part of Gemini’s broader strategy to comply with the UK’s evolving regulatory landscape concerning digital assets. The UK has recently introduced a financial promotions regime and passed legislation empowering law enforcement to seize crypto assets tied to illegal activities.
CTO Exit Amid Regulatory Shift
In response to these changes, Gemini has restructured its operations by creating dedicated communication channels for UK customers and implementing risk warnings across its trading platform. This announcement comes after news that Pravjit Tiwana, Gemini’s Chief Technology Officer, will be departing the exchange. Tiwana has been influential in realigning the exchange’s corporate ethos but is leaving as part of the company’s adaptation to regulatory demands.
Hot Take: Gemini’s Proactive Compliance Strategy
Gemini’s partnership with TRUST reflects a proactive approach to compliance and demonstrates the exchange’s commitment to operating within regulatory expectations. This aligns with the industry’s shift towards greater transparency and accountability, emphasizing compliance for a secure and trustworthy environment for cryptocurrency transactions.
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