Closing Time: Why Is Gemini Pulling The Plug On Canadian Crypto Accounts?

Gemini, the prominent American cryptocurrency exchange, has made a significant announcement that’s sending ripples through the Canadian crypto community. Users will have a very short 90 days to request a withdrawal due to this move.

Gemini will shut all customer accounts in Canada with limited exclusions effective December 31, 2024, according to an email. Users who have depended on Gemini for digital asset transactions may be concerned about the future of crypto trading in Canada and the consequences of this sudden shift.

Regulatory Pressures Prompt Exit

Gemini withdrew its services once the CSA passed fresh rules. To keep serving consumers, the CSA mandated that all Canadian cryptocurrency trading platforms submit a pre-registration undertaking by February 22, 2024.

The last push for compliance requirements to be up to December 31, 2024, resulted from multiple extensions up to April 30, 2024. In this sense, despite having filed their pre-registration on April 13, 2023, Gemini decided to withdraw from the market rather than deal with all the regulatory complications that would arise.

Source: Gemini

Similar pressures have led other big exchanges to leave the Canadian market, including Binance and OKX. This pattern shows that foreign platforms are becoming more worried about how to adapt to Canada’s changing regulatory environment.

The Winklevoss Twins, Gemini founders. Image: Boston Magazine

Gemini, founded by the Winklevoss twins, used to think Canada was a key market for their international expansion, as pointed out by one of its representatives. Many exchanges, however, are rethinking their involvement in the country in light of the stricter requirements.

As of today, the market cap of cryptocurrencies stood at $2.4 trillion. Chart: TradingView.com

Concerns And Impact On Users

The announcement has caused concern among Gemini customers in Canada. There is a pressing need for many to quickly access the substantial sums they have deposited into their accounts. Before the deadline, users should move their money to an external wallet, according to Gemini’s email.

Gemini to shut down Canadian operations by year-end amid new regulatory requirements

Crypto exchange Gemini announced it will close all customer accounts in Canada by Dec. 31, 2024, according to Cointelegraph. In a Sept. 30 email, Gemini told its Canadian users they had 90 days…

— CoinNess Global (@CoinnessGL) September 30, 2024

Users who have had problems withdrawing payments in the past are understandably worried about this situation. A number of consumers have complained about account lockouts and lengthy durations of unresponsive customer assistance.

Those without instantaneous access to their money or without experience removing assets from exchanges may feel extra strain during this withdrawal period. One dissatisfied customer expressed their desire to “move my monies out of Gemini and terminate my account” on social media.

Gemini Shutdown: Where Crypto Will Go From Here In Canada

The exit of Gemini raises concerns regarding the future of cryptocurrency trading in Canada. Some exchanges are adhering to regulations and continuing operations, while others are completely withdrawing. This trend may result in a more restricted array of platforms for Canadian traders and investors going forward.

Featured image from Pexels, chart from TradingView