Gemini, a popular crypto exchange, recently announced its decision to cease operations in Canada by the end of 2024. In an email sent to customers on September 30, the company stated that all customer accounts in Canada would be closed by December 31, 2024, with limited exceptions. Customers were given until the end of the year to withdraw their assets from the platform.
While Gemini did not provide specific reasons for its departure from Canada, the move is in line with other crypto firms that have recently exited the Canadian market. Over the past year, companies like Binance and Paxos have also left, citing regulatory challenges. This trend follows the Canadian government’s implementation of stricter regulations for crypto exchanges.
In February, the Canadian Securities Administrators (CSA) issued a directive requiring all platforms to sign a pre-registration undertaking (PRU) in order to continue operating. The goal of these measures is to protect investors, particularly in light of the insolvencies of Voyager, Celsius, and FTX in 2022. The regulations include restrictions on how exchanges interact with clients, such as prohibiting Canadian users from trading stablecoins without approval from the CSA.
Initially, Gemini complied with the regulations by signing the PRU and completing its filing. At that time, the exchange viewed Canada as a key market for international expansion. The sudden decision to exit the country has come as a surprise to many industry observers.
Meanwhile, Canada’s securities regulator has extended the compliance deadline for crypto platforms to the end of 2024. Originally set for October, this new deadline gives exchanges more time to meet regulatory requirements or propose alternative solutions. Failure to comply could result in penalties, including restrictions on certain products for Canadian users.
Currently, only a few platforms like Kraken and Coinbase are still operating under the stricter regulations in Canada. Gemini’s departure from the market reflects the challenges that crypto exchanges face in navigating regulatory frameworks in different countries.
As Gemini prepares to exit Canada, it remains to be seen how the crypto landscape in the country will evolve in response to these regulatory changes.