Gemini to Close Canadian Account: Advised Users to Withdraw Funds

Gemini's Exit from Canada: Account Closures and Regulatory Challenges

Gemini, the crypto exchange founded by the Winklevoss twins, has announced it will close all Canadian user accounts by December 31, 2024. In a recent email sent to its Canadian customers on September 30, Gemini informed users they have 90 days to withdraw their funds from the platform. The closure of accounts follows a series of stringent regulatory measures introduced by Canadian financial authorities earlier this year.

“Effective December 31, 2024, Gemini will close all customer accounts in Canada with limited exceptions,” the email stated. The exchange urged its Canadian users to transfer their crypto assets to external wallets and withdraw fiat to linked bank accounts before the deadline.

Regulatory Changes Prompt Gemini’s Exit

Gemini is exiting the Canadian market by December 31, 2024, due to stringent new regulations by the Canadian Securities Administrators (CSA). The CSA new regulations, effective February 22, 2024, require crypto platforms to sign a pre-registration undertaking and restrict stablecoin transactions without approval. 

Despite filing its pre-registration on April 13, Gemini decided to cease operations. Other major exchanges like OKX, dYdX, Paxos, Bybit, and Binance have also left Canada, citing regulatory challenges and investor protection concerns.

Impact on Canadian Users

Gemini’s exit is a significant blow to Canadian crypto investors who now face limited options for trading. The Canadian Investment Regulatory Organization (CIRO) has tightened membership requirements, ensuring regulatory compliance and customer protection. These changes are part of broader efforts to safeguard investors following recent insolvencies involving platforms like Voyager Digital, Celsius Network, and FTX.

The closure of Gemini’s Canadian accounts highlights the growing regulatory challenges facing crypto exchanges globally. As regulatory landscapes continue to evolve, exchanges must navigate complex requirements to maintain operations in different jurisdictions.

For now, Canadian users of Gemini must ensure they withdraw their assets before the December 31 deadline to avoid any potential loss of funds.

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