Gemini Exits Canada: Impact of Stablecoin Regulations on Crypto Exchanges

Gemini Exits Canada Amid Stricter Cryptocurrency Regulations and Stablecoin Restrictions

The Canadian users of Gemini, a cryptocurrency exchange created by Cameron and Tyler Winklevoss, were informed that the platform would be shut down on September 30. The abrupt change has raised a lot of concerns regarding Gemini’s departure’s motivations. Simultaneously, the Canadian government has been enforcing stricter rules on the cryptocurrency sector, leading some exchanges to exit the country.

Shortly after the Canadian Securities Administrators (CSA) updated cryptocurrency trading platforms (CTP) on September 26 about stablecoins, also known as value-referenced crypto assets (VRCA), Gemini announced their departure. The regulatory body once again extended in the update the timeframe by which CTPs will be prohibited from providing stablecoins that don’t adhere to the criteria and conditions set forth by the CSA. The CSA pushed the deadline to October 31, claiming technical difficulties with compliance, after first requiring exchanges to comply by April 30, 2024. The regulator then requested that CTPs comply by December 31, 2024, and on September 26, it informed the public of a further deadline extension.

Canada’s Crypto Exchanges Face New Regulatory Hurdles Amid Stablecoin Rules

The CSA stated that the purpose of the extension is to provide CTPs additional time to either adhere to the requirements of their registration or pre-registration undertaking (PRU) or to submit substitutes that address investor protection issues.

Even if a specific VRCA meets the terms and conditions of an applicable registration, exemptive relief decision or PRU, it does not mean the CSA approves or endorses the VRCA, endorses its safety, or that it is compliant with Canadian securities laws.

CSA

At least 12 cryptocurrency exchanges are now permitted to operate in the nation, with decisions made by local regulators still in effect, according to the official records of the CSA. These exchanges include Wealthsimple Investments, Newton Crypto, Netcoins, Bitbuy Technologies, Coinbase Canada, Coinberry, Fidelity Clearing Canada, and Shakepay, among others. The CSA also offered a list of cryptocurrency companies that were prohibited in specific Canadian areas. Several businesses, including Catalyx, CoinEx Global, KuCoin, Poloniex, XT.com, and LiquiTrade, are on the list of banned cryptocurrency trading platforms.

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