Crypto exchange Gemini is following in the footsteps of Kraken and Binance with Canadian pre-registration undertaking filing.
Gemini, a prominent cryptocurrency exchange, has taken a significant step toward entering the Canadian crypto market by filing a pre-registration undertaking with the Ontario Securities Commission.
The submitted undertaking is an essential requirement for any cryptocurrency exchange aiming to operate within the country.
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As part of its international expansion, Gemini seeks to establish itself as a regional dealer in Canada, a move fueled by the nation's status as one of the most important and developed markets in the Americas.
Cynthia Del Pozo Garcia, Director of Strategy and Corporate Development at Gemini, emphasized the importance of the Canadian market, stating:
As one of the most important and developed markets in the Americas, Canada has played an essential role in Gemini's international expansion.
Del Pozo Garcia also highlighted Gemini's numerous global licenses, such as state money transmitter licenses, an E-Money License from the UK's Financial Conduct Authority, and an E-Money License from the Central Bank of Ireland.
In relation to these licenses, she noted that Gemini is subject to annual financial statement audits and bank examinations conducted by the New York Department of Financial Services.
It is worth noting that on February 22nd, the Canadian Securities Administrators (CSA) released a notice requiring all crypto asset platforms operating in the country to submit the pre-registration undertakings.
On top of that, the new regulations ordered crypto exchanges to offer Canadian users only those stablecoins which receive approval from CSA. The notice also stated:
In light of recent insolvencies involving a number of CTPs, including Voyager Digital, Celsius Network, the FTX group of companies, BlockFi, and Genesis Global (collectively recent CTP insolvency events), we are introducing important new investor protection provisions into the standard form of PRU.
In response to the new regulations, cryptocurrency exchange OKX and stablecoin issuer Paxos plan to cease operations in Canada, with both companies citing regulatory uncertainty.
However, Binance and Kraken have confirmed their compliance with the new requirements by filing the pre-registration undertaking, enabling them to continue their operations in Canada.
