Posted inNews

Gemini to launch derivatives platform outside the United States

April 22, 2023No Comments


United States-based Gemini cryptocurrency exchange Announced on April 21, the upcoming launch of a derivatives platform outside the US. The move comes amid an uncertain and stricter regulatory environment for cryptocurrency firms in the country.

Dubbed the Gemini Foundation, the offshore division will offer services to users based in Singapore, Hong Kong, India, Argentina, Bahamas, Bermuda, British Virgin Islands, Bhutan, Brazil, Cayman Islands, Chile, Egypt, El Salvador, Guernsey, Israel, Jersey , New Zealand, Nigeria, Panama, Peru, the Philippines, Saint Lucia, Saint Vincent and the Grenadines, South Africa, South Korea, Switzerland, Thailand, Turkey, Uruguay and Vietnam. It will not offer services to customers in the United States.

The first derivative contract on the platform will be a Bitcoin (BTC) Gemini Dollar-denominated (GUSD) perpetual contract, followed by an ETH/GUSD perpetual contract shortly thereafter.

Eligible clients will be able to trade spot and derivative products, as well as convert USD and USD Coin (USDC) in GUSD on a 1:1 basis. Fees, wins and losses will also be processed in GUSD. The default leverage is set at 20x, with the maximum possible leverage at 100x.

Unlike traditional futures contracts, perpetual contracts never expire. Trading in perpetual futures is not regulated by the Commodity Futures Trading Commission (CFTC). Exchanges that offer crypto futures contracts, such as BitMEX, are not available to US clients.

Related: What Are Cryptocurrency Perpetual Futures Contracts?

The move comes just days after Gemini revealed plans to set up a new engineering center in India. The founders of the exchange Tyler and Cameron Winklevoss recently announced "big plans for international growth this year in APAC." Earlier this month, Gemini filed a pre-registration with the Ontario Securities Commission become a restricted distributor in Canada.

Gemini has been examined by US authorities. The New York State Department of Financial Services reportedly investigating the exchange about claims that many users believed the assets in their Earn accounts had been protected by the Federal Deposit Insurance Corporation.

Gemini's Earn program halted withdrawals in November, after its operating partner Genesis cited "unprecedented market turbulence." In January, the firm filed for Chapter 11 bankruptcy. Reports at the moment suggested that up to $900 million in Earn User Funds might have crashed. The US Securities and Exchange Commission also accused the exchange of offering unregistered securities to Earn in January.

Magazine: Best and Worst Countries for Crypto Taxes โ€“ More Crypto Tax Tips