The New York-based cryptocurrency exchange Gemini has
announced its decision to suspend services to Dutch customers starting from
November 17. This move is as a result of regulatory pressures imposed by the
De Nederlandsche Bank (DNB).
However, Gemini is not exiting the Dutch market for good;
the exchange aims to re-enter the country once it achieves full compliance with
the new crypto asset rules outlined in the European Union’s Markets in
Crypto-Assets Regulation (MiCA).
In a letter addressed to its Dutch users on September 26,
Gemini communicated the impending suspension of its operations. The letter
urged customers to either withdraw their assets or transfer them to another
wallet address to comply with the DNB’s directives. Gemini emphasized the
necessity of emptying users’ accounts by November 17, 2023.
Gemini Recommends Rival Bitvavo
In light of this, Gemini has suggested that its users
consider Bitvavo, a local cryptocurrency exchange that is duly registered with
the DNB, as an alternative for their crypto holdings. Bitvavo is an an
Amsterdam-based exchange that was established in 2018 and holds membership in the Dutch
Association of Bitcoin Companies.
This development follows a trend seen earlier in 2023 when
Binance ceased its Dutch operations due to regulatory hurdles from the DNB. At
the time, DNB press officer Tobias Oudejans suggested that compliance with MiCA
could pave the way for Binance’s potential return to the Dutch market. Presently, the DNB has registered 37 virtual asset providers,
including eToro, Coinbase, Crypto.com, and BitPay.
Gemini’s Global Expansion
In May, Gemini relocated its European headquarters from
London to Dublin. While initial reports hinted at London as the destination,
regulatory uncertainties prompted Gemini to seek a safe
haven in another jurisdiction within the British Isles.
Awesome meeting this morning with @LeoVaradkar, the Prime Minister of Ireland. We talked about the profound promise of crypto and the importance of common sense regulation to realize that promise. We believe MiCA is that common sense regulation. We also announced that @Gemini has… pic.twitter.com/Iv3NmPTmju
— Cameron Winklevoss (@cameron) May 25, 2023
Ireland’s attractiveness as a hub for financial services and
emerging technologies played a pivotal role in Gemini’s decision, the exchange
said. Its registration as a Virtual Asset Service Provider (VASP) in Ireland in
July 2022 further strengthened its commitment to the region.
In addition, Gemini bolstered its international markets with
the launch of the Gemini Foundation, a crypto derivatives platform, in April.
This move also came as a response to growing regulatory pressures in the US. Gemini Foundation provides a range of crypto
derivatives products, with its initial offerings revolving around Gemini
dollars (GUSD), the exchange’s proprietary stablecoin.
Elsewhere, Gemini filed for pre-registration with
the Ontario Securities Commission (OSC) in Canada in April to ensure its
continued operations and compliance with regulatory requirements in country.
The pre-registration filing occured in response to the OSC’s mandate requiring
all crypto exchanges operating within its jurisdiction to register with the
This article was written by Jared Kirui at www.financemagnates.com.