Gemini Takes First Steps to Comply With New Crypto Requirements in Canada

On Wednesday, April 12th, Gemini announced that had filed the pre-registration undertaking with the Ontario Securities Commission. The move, required by Canada’s new requirements for cryptocurrency companies, hints at Gemini’s commitment to its users in the country, as well as to remainining in its market.

Gemini Files Pre-Registration Undertaking with OSC

Gemini, the Winklevoss twins’ cryptocurrency company, revealed on Wednesday it had filed the pre-registration undertaking with the Ontario Securities Commission. The process is mandatory for digital assets firms wishing to continue operating in Canada and has been caused by a recent tightening of requirements for such companies in the country.

In the press release, Gemini highlights the fact that the move underscores its commitment to the Canadian market and users, and states that the country has been “at the forefront of the global crypto fund management space”. Once the process is completed, the Winklevoss twins’ company will become a registered restricted dealer in Canada.

Canada’s decision to tighten the requirements for cryptocurrency companies intent on operating in the country caused some speculation on which major players in the industry will elect to comply with the undertaking. At the very end of March, Kraken made a similar announcement as it had also filed the pre-registration.

On the other hand, the decentralized exchange dYdX made the decision to leave the Canadian market. While not mentioning the new requirements by name as the cause for the decision, the DEX stated it hopes that the regulatory climate in the country will change and allow it to reopen.

Has Gemini Pulled Out of the FTX Contagion?

There has been some uncertainty surrounding Gemini’s future operation over the previous months, as the company was one of the first to signal it had taken significant damage during the collapse of FTX. Already on November 16th, it froze withdrawals from its Earn platform, and, by early January, it closed the service altogether.

Gemini’s relations with Genesis and its parent company, the Digital Currency Group, have been at the center of the news about the company since the beginning of 2023. January opened with two antagonistic open letters penned by the Winklevoss twins that accused DCG’s Barry Silbert of negotiating in bad faith and even called for his removal. By the end of the month, the feud seemingly subsided as Genesis filed for bankruptcy and Gemini and DCG made a preliminary agreement on how to handle the firm’s assets.

While things have been relatively quiet for several months, there are still several outstanding issues facing Gemini. In the midst of the January feud, the SEC stepped in and sued both Gemini and Genesis for allegedly offering unregistered securities. More recently, it was reported that the company borrowed $100 million from its owners’ own wealth after allegedly failing to secure outside funds again sparking worries about the actual health of the business.

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