Gemini, the cryptocurrency exchange founded by the Winklevoss twins, plans to close all customer accounts in Canada by the end of 2024.
In an email sent to Canadian users on September 30, the exchange informed them that they have until December 31, 2024, to withdraw their assets. The email clarified that all accounts will be closed with few exceptions. Users were given a 90-day window to ensure their funds are moved off the platform.
“Effective December 31, 2024, Gemini will close all customer accounts in Canada with limited exceptions. As a result, we will be closing your Gemini account,” the company stated in the email.
This decision follows tighter regulatory measures in Canada concerning cryptocurrency exchanges. Earlier this year, the Canadian Securities Administrators (CSA) implemented new requirements for trading platforms.
These rules mandate that crypto exchanges sign a pre-registration undertaking (PRU) to continue their operations in the country. Additionally, Canadian exchanges must seek approval from the CSA before offering certain services, such as the ability to trade stablecoins.
The CSA explained the necessity of these new provisions, citing the collapse of several crypto platforms like Voyager Digital, Celsius Network, FTX, BlockFi, and Genesis Global, which triggered concerns about investor protection.
Despite initially complying with the new regulations, filing its pre-registration in April, and calling Canada an essential market for its international expansion, Gemini has now decided to exit the country.
Other major exchanges like Binance and OKX also pulled out of the Canadian market following the introduction of these regulatory changes, while Kraken continues to operate under the new framework.
Earlier this year, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) imposed a hefty fine on Binance for non-compliance with money laundering regulations. The action was the result of findings from a compliance activity conducted in 2023.
The regulatory body cited two specific breaches: Binance’s failure to register as a foreign money services business and its failure to report a single virtual currency transaction exceeding $10,000.
Meanwhile, Coinbase has been granted the status of a “restricted dealer” in Canada, marking it the largest operator in the country.
Coinbase also outlined its intention to apply for investment dealer registration and to seek membership with the Canadian Investment Regulatory Organization (CIRO, previously known as IIROC). Additionally, Coinbase plans to register as an alternative trading system (ATS).
