The move from Gemini comes after its co-founders revealed "big plans for international growth."
Cryptocurrency exchange Gemini is gearing up to launch a derivatives platform outside the United States amid a complex regulatory environment for digital currency firms in the country.
The offshore division, known as Gemini Foundation, will cater to users in a handful of countries in Asia, Africa, South America, Europe, and Australia. The list of countries includes Singapore, India, Brazil, El Salvador, New Zealand, Nigeria, Switzerland, and Vietnam. However, US-based customers will not have access to the platform's services.
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The first derivatives contract to be offered by the platform will be a Bitcoin (BTC) perpetual contract denominated in Gemini Dollar (GUSD), with an ETH/GUSD perpetual contract to follow soon after.
Gemini clients will be able to trade both spot and derivatives products and exchange US dollars and USD Coin (USDC) into GUSD at a 1:1 ratio. It is worth highlighting that all fees, profits, and losses will be processed using GUSD. The platform will offer a default leverage of 20x, with the potential to achieve maximum leverage of 100x.
On top of that, when unveiling the Gemini Foundation, the company noted:
Gemini Foundation will continue to expand its derivatives offering in the coming months. We’re just getting started, so stay tuned!
This announcement comes shortly after Gemini unveiled plans to establish a new engineering hub in India. The crypto exchange's founders, Tyler and Cameron Winklevoss, have shared their vision for "international growth this year in APAC."
It is worth noting that Gemini also recently submitted a pre-registration application to the Ontario Securities Commission in hopes of becoming a registered crypto service provider in Canada.
However, Gemini's international aspirations have been met with scrutiny from US regulators. The New York State Department of Financial Services is allegedly investigating the crypto exchange after numerous users claimed they believed their assets in Earn accounts were covered by the Federal Deposit Insurance Corporation.
Gemini's decision to introduce its derivatives platform to markets outside the US demonstrates a strategic move to expand internationally while navigating the challenging regulatory landscape at home.
Gemini is not the only crypto exchange looking to spread its wings away from the US. Crypto exchange Coinbase has recently received a class F license from Bermuda Monetary Authority. The company also revealed plans to help the United Kingdom to become a successful Web3 hub.