Gemini, the crypto-exchange of the Winklevoss brothers, has notified its customers in Canada that from December 31, 2024, their accounts on the platform will be closed. This means that Canadian users have 90 days to withdraw their funds. 

Gemini: the crypto-exchange closes in Canada the accounts of its users on December 31, 2024

The crypto-exchange of the Winklevoss brothers, Gemini, has sent an email to its users in Canada to inform them that on December 31, 2024, their accounts on the platform will be closed. 

“Starting from December 31, 2024, Gemini will close all customer accounts in Canada with limited exceptions. As a result, we will close your Gemini account”.

In practice, Canadian users of Gemini have 90 days to withdraw their funds from the crypto-exchange. The email reads as follows: 

“We inform you that you will have 90 days starting from September 30, 2024, to remove your assets from the Gemini platform. Please withdraw your assets by December 31, 2024, as Gemini will close your account after that date.”

Gemini apologized for the inconvenience but did not want to communicate to users in Canada what the reasons for this decision are. 

Analyzing the regulatory situation, however, this move by Gemini comes after months in which new rules for crypto-exchanges and trading platforms have been introduced in the country. 

Gemini abandons Canada: the decision of the crypto-exchange after months from the regulatory change

Gemini seems to be abandoning Canada after in February 2022, the Canadian Securities Administrators (CSA) introduced a new commitment for crypto-exchanges.

In fact, it seems that cryptocurrency trading platforms must sign a legally binding pre-registration undertaking (PRU) to continue operating in the country. 

Not only that, among the new important investor protection provisions in the standard PRU module of Canada, there is one that prohibits Canadian clients from purchasing or depositing stablecoins without CSA approval. 

Despite Gemini having initially adhered to the new regulations in Canada, today it seems that the situation is no longer tenable, to the point of closing the platform’s accounts in the country. 

Other crypto-exchanges have also found themselves having to adhere to Canada’s new rules. Thus, while today Gemini sees an imminent closure, Coinbase, on the other hand, seems to have obtained all the necessary licenses. 

Last April, Coinbase obtained the registration as a “restricted dealer”, and confirmed itself as the largest registered crypto-exchange in the jurisdiction.

The situation of Binance in Canada

For the crypto-exchange Binance, however, the situation in Canada has been more unfortunate. The most recent news is that Binance has filed an appeal for a 4.4 million dollar fine imposed by the Canadian FINTRAC.

The Canadian regulatory authority has accused Binance of facilitating 5,902 transactions of at least 1000 CAD, without being registered in the national registers. Not only that, Binance is also accused of committing administrative violations, such as failing to register as a foreign money services business, and not reporting large crypto transactions equal to or greater than $10,000. 

Binance had already announced in May 2023 its intention to exit the Canadian market. Officially, Binance ceased operations in Canada last September 2023. 

The current accusations by FINTRAC are directed at the operations carried out by Binance during that period, fining it for its violations.