Closure Announcement: Gemini Ends Services in Canada
Gemini, the cryptocurrency exchange founded by the Winklevoss twins, has delivered significant news to its Canadian users. The platform announced that starting December 31, 2024, it will cease operations for all accounts held in Canada. Customers have a limited timeframe to take action regarding their assets on the exchange.
Gemini Terminates Accounts for Canadian Users by December 31, 2024 🚨
The crypto exchange, Gemini, has emailed its Canadian clientele regarding an important update: all user accounts will be deactivated on December 31, 2024.
“From December 31, 2024, Gemini will terminate all customer accounts in Canada, with certain exceptions. Consequently, your Gemini account will be closed.”
For users in Canada, this announcement translates to a crucial window: 90 days are available for the withdrawal of funds from the platform. The communication indicated the following:
“You have 90 days commencing September 30, 2024, to withdraw your assets from the Gemini platform. Ensure you complete your withdrawals by December 31, 2024, since Gemini will officially close your account post that date.”
While Gemini expressed regret for any resultant issues, the exchange refrained from providing specific reasons for this decision.
In reviewing the broader regulatory landscape, Gemini’s decision appears to happen amid newly established rules affecting crypto exchanges and trading services in Canada.
Gemini Exits Canada: A Reaction to New Regulations 🌐
Gemini’s exit seems to coincide with the introduction of new regulations by the Canadian Securities Administrators (CSA) in February 2022. These changes mandated that crypto exchanges adhere to new commitments.
As per the regulations, cryptocurrency trading platforms are now required to sign a legally binding pre-registration undertaking (PRU) to maintain their operations within Canada.
Additionally, one significant provision of the PRU standard includes restrictions on Canadian clients, specifically prohibiting them from investing in or depositing stablecoins without prior CSA authorization.
Even though Gemini initially complied with the updated regulations, it appears that sustaining operations in Canada has become increasingly difficult, leading to the decision to close accounts.
Other exchanges have similarly been grappling with the new Canadian rules. For instance, while Gemini moves toward account closure, Coinbase has navigated this regulatory environment more successfully.
Last spring, Coinbase secured registration as a “restricted dealer,” confirming its status as the largest registered crypto platform in the country.
Binance Faces Challenges in Canada ⚠️
The situation for Binance in Canada has unfolded quite differently. Recently, Binance has filed an appeal against a hefty $4.4 million fine imposed by the Canadian Financial Transactions and Reports Analysis Centre (FINTRAC).
FINTRAC has accused Binance of facilitating 5,902 transactions exceeding 1000 CAD without proper registration within the national framework. Furthermore, Binance faces allegations of various administrative breaches, including a failure to register as a foreign money services business and not reporting significant crypto transactions of $10,000 or more.
Earlier in May 2023, Binance indicated its intention to withdraw from the Canadian market. The platform officially halted operations in Canada as of September 2023.
Current allegations from FINTRAC are directed towards the transactions completed by Binance during its operational period in Canada, resulting in the imposed penalties.
As these developments unfold, it’s evident that the regulatory climate in Canada continues to evolve, impacting both existing and prospective operations of cryptocurrency exchanges.
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