Crypto exchange Gemini has announced plans to cease operations in Canada by the end of 2024, according to a Sept. 30 email sent to its customers.
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.”
Customers have until the end of the year—90 days from Sept. 30—to withdraw their assets from the crypto platform.
Why is Gemini leaving Canada?
Gemini has not provided detailed reasons for its decision, but its move aligns with other crypto firms that have recently left Canada.
Over the past year, prominent firms such as Binance and Paxos have also exited the Canadian market, citing regulatory challenges. These departures followed the Canadian government's introduction 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) to continue operations. The CSA emphasized that these measures aim to protect investors, referencing the 2022 insolvencies of Voyager, Celsius, and FTX. The regulations include limits on how exchanges engage with clients, such as prohibiting Canadian users from trading stablecoins without approval from the CSA.
Gemini initially complied with the regulations, signing the PRU and completing its filing. At the time, the exchange viewed Canada as a key market for international expansion. So, its sudden decision to leave has surprised industry observers.
Gemini has not responded to CryptoSlate's request for comment as of press time.
Crypto regulations
Meanwhile, Gemini's exit coincides with Canada's securities regulator extending the compliance deadline for crypto platforms to the end of 2024.
Initially set for October, the new deadline gives exchanges more time to meet regulatory requirements or propose safer alternatives. Failure to comply could result in penalties, including restricting specific products for Canadian users.
According to the regulator's website, only a few platforms—such as Kraken and Coinbase—continue to operate under these stricter regulations.