Crypto Exchange Gemini to Exit Canada by December Leaving Users 90 Days to Withdraw Funds

Gemini Closes All Canadian Accounts Amid Stricter Regulations

Gemini, the prominent cryptocurrency exchange co-founded by Cameron Winklevoss, has announced its decision to terminate all customer accounts in Canada by 31 December 2024.

In an email sent to its Canadian users on 30 September 2024, the company outlined that account closures will commence on the specified date and advised customers that they have a 90-day window to withdraw their assets from the platform.

The email stated,

“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.”

Why Is Gemini Exiting the Canadian Market?

This abrupt exit follows the implementation of new regulations by the Canadian Securities Administrators (CSA), which began requiring all crypto trading platforms to sign a legally binding pre-registration undertaking to operate within Canada.

These measures were introduced on 22 February 2024, following a series of insolvencies in the sector, including the collapse of Voyager Digital and the FTX group.

In light of these events, the CSA has introduced enhanced investor protection provisions, which have proven challenging for many exchanges.

In April, Gemini submitted its pre-registration, with a spokesperson highlighting Canada's significance in the Americas, stating that the country had played an “essential role in Gemini’s international expansion.”

Despite this commitment, the tightening regulations have led to the departure of several major exchanges.

Binance, OKX, dYdX, Paxos, and Bybit have all announced their exit from the Canadian market, signalling a shift in the landscape for crypto trading in the country.

Gemini's Recent Financial Moves and Customer Impact

Earlier in 2024, Gemini undertook a substantial financial move by distributing $2.18 billion in digital assets to 232,000 users of its Gemini Earn program, following the bankruptcy of Genesis.

The distribution represented a remarkable 242% return on assets locked since January 2023.

Customers who had loaned 1 Bitcoin (BTC) to Genesis would receive back 1 BTC, benefiting from the recent surge in Bitcoin's price.

“We are thrilled to have been able to achieve this recovery for our customers,” Winklevoss expressed, acknowledging the difficulties faced during the protracted recovery process.

“We recognise the hardship caused by this lengthy process and appreciate our customers' continued support and patience throughout.”

As customers prepare for the closure of their accounts, Gemini has encouraged them to transfer their crypto assets to external wallets.

Users with fiat balances can withdraw funds to their linked bank accounts, ensuring a smooth transition out of the platform.

What Do the Regulatory Changes Mean for Users?

The regulatory environment for crypto trading in Canada has become increasingly stringent, with the Canadian Investment Regulatory Organisation (CIRO) imposing strict membership requirements.

These requirements have created significant barriers for international crypto exchanges aiming to operate within Canadian borders.

Furthermore, some provinces have enacted their own specific regulations regarding crypto assets, necessitating that Canadians stay informed about both federal and provincial guidelines.

The latest regulations prevent platforms from allowing clients to purchase or deposit value-referenced crypto assets, commonly known as stablecoins, without prior approval from the CSA.

This has raised concerns among exchanges, leading to their exit from the market.

Binance, for instance, pulled out of Canada last year, citing a lack of reasonable avenues to protect Canadian users.

Bybit followed suit in June 2023, citing increasing regulatory scrutiny as a critical factor in its departure.

@Bybit_Official Bybit has pulled out of #Canada, citing "recent regulatory developments." 🇨🇦imposed new regulations on the cryptocurrency industry in February. The exchanges an ultimatum to comply or leave. Under the new rules, exchanges are not allowed to offer any form of
— Nakia Chanel Joy (@NakiaChanelJoy) May 31, 2023r/> a

Gemini’s decision to close its Canadian accounts marks a significant development in the ongoing evolution of the crypto trading landscape in Canada, reflecting the challenges posed by a rapidly changing regulatory environment.