Gemini Registers as Restricted Dealer with OSC to Continue Operating in Canada

04/13/2023 08:06 • Blockchain Briefs • 73 views

On April 13th, it was reported that Gemini had submitted a pre registration commitment letter to the Ontario Securities Commission (OSC) in Canada, seeking registration as a restricted dealer and intending to continue operating in Canada through this action. Recent Canadian securities regulations require such registration. These regulations also mean that cryptocurrency companies must separate the funds of Canadian customers from those of foreign users. In addition, the company must refuse to provide certain services to Canadian residents. Gemini’s decision to register in Canada means that it will continue to provide services to retail users in the country. According to Gemini’s website, its exchange is currently available in Canada and supports trading pairs involving Canadian dollars (CAD) and other assets. （Cryptoslate）

Gemini has submitted pre registration documents to Canadian regulatory authorities

Introduction

On April 13th, 2021, Gemini, a leading cryptocurrency exchange, made headlines by submitting a pre-registration commitment letter to the Ontario Securities Commission (OSC) in Canada. This was in response to recent Canadian securities regulations that require all cryptocurrency companies operating in the country to register as a restricted dealer.

What Does Gemini’s Registration Mean?

Gemini’s decision to register as a restricted dealer with the OSC means that the exchange can continue to operate in Canada and provide services to both retail and institutional users. This move also ensures that Gemini’s Canadian customers’ funds are segregated from those of foreign users. Furthermore, it requires the exchange to refuse certain services to Canadian residents, including leveraged crypto trading.

Importance of Gemini’s Registration in Canada

Gemini is not the only cryptocurrency exchange affected by the new Canadian securities regulations. Many other exchanges are also required to register to continue operating in the country. However, Gemini’s move to register in Canada is seen as a significant step for the company as it aims to expand its services into the Canadian market.
According to Gemini’s website, the exchange is currently available in Canada and supports trading pairs involving Canadian dollars (CAD) and other digital assets. By registering with the OSC, the exchange can now offer additional services to Canadians, such as crypto custody and trading on margin.

Concerns and Challenges

Despite the benefits of registering with the OSC, some concerns have been raised about the increased regulatory burden on cryptocurrency companies operating in Canada. Some experts believe that these regulations will hinder innovation and stifle growth in the Canadian cryptocurrency industry.
Furthermore, some have questioned the effectiveness of these regulations, as they may not prevent misuse of cryptocurrency or protect investors from scams. The challenge for regulators is to strike a balance between protecting consumers and promoting innovation and growth in the cryptocurrency sector.

Conclusion

Gemini’s decision to register as a restricted dealer with the OSC is a significant development in the Canadian cryptocurrency industry. By complying with the new securities regulations, the exchange can continue to provide services to its Canadian customers and expand its reach in the Canadian market. However, the effectiveness of these regulations and their impact on innovation and growth in the sector remains to be seen.

FAQs

1. What does Gemini’s registration as a restricted dealer entail?
Gemini’s registration as a restricted dealer with the OSC in Canada means that the exchange can continue to operate in the country and offer services to both retail and institutional users, while ensuring that Canadian customers’ funds are segregated from those of foreign users. However, the exchange is required to refuse certain services to Canadian residents, including leveraged crypto trading.
2. Will Gemini be able to expand its services in Canada after registering with the OSC?
Yes, by registering with the OSC, Gemini can now offer additional services to Canadians, such as crypto custody and trading on margin.
3. Are there concerns about the effectiveness of the new securities regulations on cryptocurrency companies in Canada?
Yes, some experts believe that the increased regulatory burden may stifle innovation and growth in the Canadian cryptocurrency industry. Additionally, the effectiveness of these regulations in preventing misuse of cryptocurrency and protecting investors from scams remains to be seen.

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