The New York-based cryptocurrency exchange Gemini has announced its decision to suspend services to Dutch customers starting from November 17. This move resulted from regulatory pressure 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 Foundation provides a range of crypto derivatives products, with its initial offerings revolving around Gemini dollars (GUSD), the exchange's proprietary stablecoin.
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 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 this year when Binance ceased its Dutch operations due to regulatory hurdles from the DNB. At the time, DNB's representative, 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 has 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 is a response to the growing regulatory pressure in the US.
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 the country. The pre-registration filing occurred in response to the OSC's mandate requiring all crypto exchanges operating within its jurisdiction to register with the regulator.
This article was written by Jared Kirui at www.financemagnates.com.
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