To operate in Canada as a restricted dealer, Gemini has submitted a pre-registration undertaking to the Ontario Securities Commission (OSC), which is a requirement for all cryptocurrency exchanges operating there.
- Gemini has delivered a pre-registration commitment to the Ontario Securities Commission (OSC) to become a restricted dealer in Canada.
- The pre-registration undertaking was mandated by the Canadian Securities Administrators (CSA) in February 2021 to protect investors.
- Gemini adheres to all regulations, not only those in Canada where the exchange holds multiple licenses.
Announcement
One of the significant cryptocurrency exchanges in the world, Gemini, has made a pre-registration undertaking to the Ontario Securities Commission (OSC), which regulates the capital markets in Ontario, the most populous province in the nation. The Canadian Securities Administrators (CSA) require the change for Gemini to qualify as a restricted dealer in Canada. According to Cynthia Del Pozo Garcia, head of the strategy and corporate development at Gemini, “the project is critical for securing the exchange’s continuous functioning in Canada because the country is a crucial market for its international expansion.”
The Pre-Registration Undertaking
All Canadian crypto-asset trading platforms that wish to continue operating must sign the pre-registration undertaking, which has legal force. The CSA implemented the regulation in February 2021, along with additional limitations to safeguard investors.
The agreement calls for exchanges to adhere to stringent rules, such as only enabling Canadian customers to purchase or deposit stablecoins after first receiving CSA clearance. This action has been taken in reaction to recent bankruptcies affecting several cryptocurrency trading platforms, including Voyager Digital, Celsius Network, the FTX company group, BlockFi, and Genesis Global.
Gemini’s Compliance with Regulations
Regulation adherence by Gemini is in more than just Canada. The exchange has secured several licenses across the globe, including state money transmitter licenses, an e-money license from the Central Bank of Ireland, and e-money licenses from the Financial Conduct Authority in the UK. Gemini is subject to bank examinations by the New York Department of Financial Services as part of the license requirements, including annual audits of its financial statements. These controls guarantee that the exchange runs openly and that its users’ money is safe.
Impact on Other Cryptocurrency Exchanges
Other Canadian cryptocurrency exchanges have been impacted since the new rules were enacted. Paxos, a fintech startup, has left Canada due to legal uncertainties, while OKX has declared it will stop operating there by June 2023.
Other exchanges, like Binance and Kraken, have claimed to have submitted the pre-registration undertaking necessary to continue operating in the nation. This action demonstrates the exchanges’ importance for the Canadian market and their resolve to abide by legal regulations to conduct business there in the future.
Canada as a Crucial Market for Cryptocurrency Exchanges
With its friendly regulatory framework and technologically adept populace, Canada has become a significant market for crypto exchanges. By balancing investor safety with innovation, the nation has been at the forefront of building regulatory frameworks for bitcoin trading platforms. However, questions about investor protection have been raised by recent bankruptcies involving crypto exchanges. The new rules from the CSA are intended to ease these worries and guarantee that cryptocurrency exchanges operating in Canada adhere to the same rules as conventional financial institutions.
Conclusion
To maintain operations in Canada, one of the biggest cryptocurrency markets in the world, Gemini made the essential move to file a pre-registration undertaking with the OSC. The action emphasizes how crucial regulatory compliance is and how cryptocurrency exchanges must abide by rules to safeguard investors’ interests. The regulatory landscape for bitcoin trading platforms in Canada has been changing quickly, and the most recent rules have given operating exchanges in the nation more clarity. Even though some exchanges may decide to stop operating, the regulations ultimately guarantee a level playing field for all exchanges and safeguard investors’ interests.
