<p class="MsoNormal">Gemini, the
<a href="https://www.financemagnates.com/terms/c/cryptocurrency-exchange/" class="terms__main-term" id="601e2e5f-0c28-4253-9ad4-5e6b251ba2fa">cryptocurrency exchange</a> owned by the Winklevoss twins, is examining
possibilities to launch an international crypto derivatives trading platform, according
to The Information report from Wednesday.</p><p>Gemini Reportedly Seeks to
Open Overseas Derivatives Exchange</p><p class="MsoNormal">The new
platform from Gemini would offer trading in perpetual futures. Derivatives of
this type are banned in the United States for retail investors due to their somewhat
risky nature. Making them available in another jurisdiction would allow Gemini to
offer users a product with no expiration date and the possibility of high
leverage.</p><p class="MsoNormal">Two weeks
ago, Bloomberg reported that another major crypto exchange, Coinbase,
was looking to take a similar step. The search for foreign locations to
relocate some trading services came after the US Securities and Exchange
Commission (SEC) stepped up and tightened its crackdown against the
cryptocurrency sector.</p><p class="MsoNormal">It all
started with <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">the collapse of the FTX</a> digital assets <a href="https://www.financemagnates.com/terms/t/trading-platform/" class="terms__secondary-term" id="f85800b2-ccf5-4f50-9e8e-780d32afc6f6">trading platform</a> last
November. It was followed by the closure of three banks linked to digital
assets, <a href="https://www.financemagnates.com/cryptocurrency/silvergate-bank-announces-voluntary-liquidation-amid-troubles/" target="_blank" rel="follow">Silvergate Bank</a>, Signature Bank and Silicon Valley Bank, or the CFTC's
lawsuit against Binance for violating the US derivatives regulations, among
other things.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Bulge bracket bankRegional bankNo bankBitcoinChoose wisely.</p>— Tyler Winklevoss (@tyler) <a href="https://twitter.com/tyler/status/1637585166481719299?ref_src=twsrc%5Etfw">March 19, 2023</a></blockquote><p class="MsoNormal">The
Information cites
people familiar with the matter and claims that the Gemini exchange has been contacting
trading platforms in various places around the world over the past few months
in search of a market maker to support the execution of operations outside the
United States.</p><p>Third Round of Job Cuts in
Gemini and Regulatory Pressure</p><p class="MsoNormal">Pressure
from the SEC, which has led Kraken exchange <a href="https://www.financemagnates.com/cryptocurrency/kraken-shuts-staking-as-a-service-in-us-amid-30m-sec-settlement/" target="_blank" rel="follow">to shut down its staking services</a> in the US, has also hit the Winklevoss brothers' platform. In January, <a href="https://www.financemagnates.com/cryptocurrency/sec-takes-gemini-genesis-to-court-for-selling-unregistered-securities/" target="_blank" rel="follow">the
regulator charged</a> two feuding companies, Genesis Global Capital and Gemini
Trust Company, for offering and selling crypto lending products under Gemini
Earn, which the regulator alleged to be unregistered securities.</p><p class="MsoNormal">Gemini and
its Co-Founders are already dealing <a href="https://www.financemagnates.com/cryptocurrency/news/gemini-winklevoss-twins-face-class-action-lawsuit-over-lending-products/" target="_blank" rel="follow">with a class-action lawsuit</a> filed by a pair
of Gemini Earn investors who have leveled comparable allegations. The legal
action contends that the exchange and its proprietors have engaged in
fraudulent activities and breached the Exchange Act.</p><p class="MsoNormal">A few days
later, news emerged that Genesis was close to <a href="https://www.financemagnates.com/cryptocurrency/genesis-is-reportedly-preparing-to-file-for-bankruptcy-within-days/" target="_blank" rel="follow">declaring bankruptcy</a> following
the collapse of the FTX exchange, which negatively affected the entire
industry. Although the decision has not been confirmed, the problems are
visible to the naked eye, and Gemini has already carried out three rounds of
job cuts since last June.</p><p class="MsoNormal">The first
took place in June and affected 10% of the entire team, and the second in July and
involved another 7% of the workforce. The most recent was conducted <a href="https://www.financemagnates.com/cryptocurrency/third-times-the-charm-gemini-cuts-its-workforce-once-again/" target="_blank" rel="follow">at the end of
January</a> when the company reduced a further 10% of its staff.</p><p class="MsoNormal">Saxo's
Presents New Portal and JPX Gets into DeFi, read today’s <a href="https://www.financemagnates.com/forex/news-nuggets-30-march-saxos-new-portal-jpx-gets-into-defi/">news
nuggets</a>.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
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