In a move that’s shaking up the Canadian crypto community, Gemini, the popular cryptocurrency exchange founded by the Winklevoss twins, has announced it will shut down all customer accounts in Canada by the end of 2024. Canadian users have just 90 days to withdraw their assets before the platform pulls the plug on accounts in the country.
Gemini’s Canadian Exit: What Happened?
On September 30, Gemini sent an email to its Canadian users, informing them that all accounts would be closed by December 31, 2024. The email urged users to withdraw their funds within the 90-day window to avoid complications when the account closures take effect.
“Effective December 31, 2024, Gemini will close all customer accounts in Canada, with limited exceptions,” the company stated. “As a result, we will be closing your Gemini account.” While it’s clear that Canadian users will be impacted, Gemini didn’t offer much in terms of an explanation for the exit.
So, why is Gemini leaving? Well, this decision comes hot on the heels of new, stricter regulations for cryptocurrency exchanges in Canada, introduced earlier this year. These regulations are part of a broader effort to bring more oversight to the crypto industry and better protect investors.
New Rules, Big Changes
In February 2024, Canada’s financial regulators—specifically the Canadian Securities Administrators (CSA)—published new rules that require all crypto trading platforms operating in Canada to sign a legally binding “pre-registration undertaking” (PRU) if they want to keep doing business in the country. These new rules are aimed at protecting investors in the wake of several high-profile crypto exchange collapses, including FTX, BlockFi, Celsius, and Voyager Digital.
Among the major changes, crypto exchanges are now prohibited from allowing Canadian clients to buy or deposit stablecoins unless they’ve received prior approval from the CSA. These rules were introduced to minimize risk and improve investor protection, particularly after several crypto platforms filed for bankruptcy and caused massive losses.
The CSA also noted that it would implement new protections following the insolvency of several major crypto firms, underscoring its commitment to safeguarding Canadian investors.
Gemini’s Response: Compliance, then Exit
Gemini, which had previously hailed Canada as a key market for its international expansion, initially complied with the new regulations. On April 13, the exchange filed its pre-registration with the CSA, signaling its intention to continue operating in Canada. A company spokesperson emphasized that Canada was “one of the most important and developed markets in the Americas,” which had played an essential role in Gemini’s growth.
However, despite Gemini’s initial effort to stay compliant with the new rules, the company ultimately decided to exit the Canadian market entirely. While Gemini didn’t offer a detailed reason for its decision, it’s likely that the new regulatory environment made it difficult for the exchange to continue operating in a way that was profitable and sustainable in Canada.
The Exodus of International Crypto Exchanges from Canada
Gemini is not the first, nor will it likely be the last, crypto exchange to leave Canada due to the new regulations. Binance, Kraken, OKX, Bybit, and others have already followed suit, either scaling back their operations or completely pulling out of the country.
After the CSA’s regulations were announced, Binance initially complied by filing the required pre-registration. But just a few months later, the platform made a surprising about-face, announcing on May 12 that it would be shutting down operations in Canada entirely.
Similarly, exchanges like Kraken and Bybit also faced challenges adapting to the new rules, leading them to exit the market.
While the Canadian market remains one of the most developed in the Americas, many crypto exchanges are choosing to prioritize more regulatory-friendly jurisdictions.
What Does This Mean for Canadian Crypto Users?
If you’re a Canadian crypto enthusiast and you’re using Gemini, now is the time to start thinking about how to move your funds off the platform. The 90-day window gives users a small window of time to find alternatives, but it’s best not to wait until the last minute.
For those looking for new exchanges, options like Kraken and Binance (though with some restrictions) remain available, but it’s clear that Canadian crypto users are facing a rapidly changing landscape. Other exchanges, such as CoinSquare and Shakepay, are still actively operating in Canada, so it’s worth checking them out if you want to keep your crypto in Canadian-friendly hands.
Ultimately, while the regulatory crackdown may be difficult for some crypto enthusiasts, it’s all part of an effort to ensure greater investor protection and stability in the industry. As the Canadian crypto scene evolves, it’s important for users to stay informed and be prepared for the changes ahead.
Final Thoughts
The closure of Gemini’s Canadian accounts is just the latest chapter in the ongoing saga of crypto regulation around the world. While this may be a tough blow for Canadian users, it also signals a shift toward a more regulated, secure crypto environment. So, if you’re holding assets on Gemini, make sure you get them off the platform soon, and stay tuned for more updates as the Canadian crypto landscape continues to evolve.
