Gemini Foundation’s Global Expansion: Innovation vs Regulatory Challenges in Crypto Derivatives

Cryptocurrency exchange expansion, offshore regulatory environments, Gemini Dollar perpetual contracts, 29 countries, excluded US, UK, EU, Asia subsidiary, engineering base in India, NFT and crypto marketplaces, contrast bold move and regulatory concerns, crypto regulations interplay, discussion surrounding future implications.

Crypto enthusiasts have been following the development of Gemini with keen interest as the exchange recently launched a platform for non-US derivatives, called the Gemini Foundation. This move marks a growing trend among cryptocurrency companies in search of more favorable regulatory environments offshore, as the US market has seen increased scrutiny from regulatory bodies such as the SEC. The platform is now available to clients in 29 countries and territories, offering up to 100x leveraged Gemini Dollar (GUSD) perpetual contracts for Bitcoin, with plans to introduce Ethereum trading in the near future.

Despite the enthusiastic response to this expansion, one cannot ignore the fact that clients from the United States, the United Kingdom, and the European Union remain excluded from the platform. Instead, Gemini Foundation services investors in select Latin America, Asia, and African countries, prompting questions about the current state and future of crypto regulations worldwide.

As Gemini takes its operations beyond the US, it has also extended its reach to Asia by establishing a new subsidiary, focusing on building an engineering base in Gurgaon, India. The new team, led by Pravjit Tiwana, CEO of Gemini Asia Pacific, will work on developing next-generation web and mobile user experiences for NFT and cryptocurrency marketplaces. Institutional and retail customers from more than 70 different countries are expected to benefit from the features and products developed in India.

This development comes amidst an increasingly challenging regulatory environment within the US, as seen by the SEC’s heightened regulatory actions against exchanges like Bittrex and Beaxy. The launch of Gemini Foundation can be considered as a response to such regulatory constraints, as it explores new frontiers in more favorable regulatory jurisdictions.

On one hand, Gemini’s decision to expand its reach to non-US derivatives markets can be seen as a bold move to ensure its continued growth and success, providing both institutional and retail traders access to a capital-efficient and dependable venue for trading derivatives. Conversely, the exclusion of clients from the US, UK, and EU raises concerns regarding the fairness and reach that such an initiative entails.

The rise of the Gemini Foundation signals a new chapter in the ongoing discussion surrounding crypto regulations and the complex interplay between businesses seeking to operate in a competitive environment and governmental bodies working to ensure the safety and security of the market. While many see the Gemini Foundation as a positive development, its exclusion of prominent markets cannot be disregarded, and this move will undoubtedly spark further debate about the implications of global crypto regulation on the industry’s future.


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