Crypto Exchange Gemini to Leave Canadian Market This Year

Gemini, a popular cryptocurrency exchange, has announced its exit from Canada and plans to shut down all Canadian user accounts by December 31, 2024.

The decision was communicated through a private email sent to its Canadian customers on Monday.

Gemini Urges Canadians to Withdraw Assets

The exchange informed users that they have a 90-day window, starting September 30, 2024, to withdraw their assets from the platform.

BREAKING: Gemini crypto exchange is officially CLOSING in Canada! 🇨🇦‼️

Forcing us to close our accounts and withdraw funds!

Absolute trash! 🗑️ pic.twitter.com/RXuRlh6gYa

— MASON VERSLUIS (@MasonVersluis) September 30, 2024

Gemini has advised Canadian clients to transfer their cryptocurrency holdings to external wallet addresses to facilitate the process. Those holding fiat currency in their accounts are encouraged to move the funds to their associated bank accounts.

Canada Enforces Strict Crypto Regulations

The decision to wind down operations in Canada follows stringent regulatory requirements enforced by Canadian authorities. The Canadian Securities Administrators (CSA) had set a compliance deadline for crypto trading platforms, which impacted many firms operating in the region.

The Canadian Investment Regulatory Organization (CIRO) has also implemented stringent membership conditions to ensure regulatory adherence and customer protection.

In 2022, the CSA further tightened its registration rules by mandating that crypto platforms sign legally binding pre-registration undertakings before serving Canadian customers.

One notable regulation prevents platforms from “permitting clients to purchase or deposit value-referenced crypto assets (commonly referred to as stablecoins),” which has posed challenges for global exchanges.

Due to these evolving regulations, several international exchanges, including OKX, dYdX, Paxos, Bybit, and Binance, have exited the Canadian market.

Binance, for example, ceased operations in Canada last year, citing new regulations around stablecoins and investor limits as obstacles that made it challenging to serve Canadian users effectively. Bybit, another crypto exchange, left Canada in June 2023, attributing its exit to increased regulatory scrutiny.

According to CoinMarketCap data, Gemini’s 24-hour spot trading volume is $74 million, and its total assets are valued at approximately $6.8 million. Tyler and Cameron Winklevoss founded the exchange in 2014. Since then, Gemini has built an established presence in the global crypto market.