Gemini Settles with CFTC, Agrees to $5 Million Fine
Resolving Allegations of Misleading Regulators
Gemini, the cryptocurrency exchange co-founded by Tyler and Cameron Winklevoss, has agreed to pay a $5 million fine to settle allegations by the Commodity Futures Trading Commission (CFTC) that it misled regulators during its bid to launch the first US-regulated Bitcoin (BTC) futures contract. The settlement, reported by Bloomberg News, averts a trial that was set to begin on January 21.
Background of the CFTC Lawsuit
The CFTC’s 2022 lawsuit accused Gemini of providing “false and misleading statements” regarding safeguards against price manipulation in Bitcoin markets. These assurances were central to the CFTC’s evaluation of Gemini’s proposed Bitcoin futures contracts, which would have tied a reference rate derived from the exchange’s pricing data. Under the settlement terms, Gemini did not admit or deny any wrongdoing.
Related Investigation and Regulatory Scrutiny
The CFTC’s lawsuit also referenced subpoenaed laptops from two former Gemini executives in connection with a related criminal investigation, which ultimately did not lead to charges. Gemini provided these devices during heightened scrutiny in late 2017 and early 2018 as the exchange sought to position itself as a regulatory pioneer in the crypto industry.
Regulatory Shift: Gemini’s Exit from Canada and Expansion in Singapore
In a separate regulatory development, Gemini recently announced its plans to exit the Canadian market on September 30, 2024. Although the exchange did not provide details on what drove the decision, the move came as other major crypto firms, such as Bybit, Binance, and Paxos, were leaving the country, citing regulatory challenges.
On the other hand, Gemini has secured a license in Singapore to provide cross-border money transfer and digital payment token services. This move is in line with Singapore’s embracing of various global crypto firms, such as OKX, Upbit, Ripple, and Coinbase.
Conclusion
In summary, Gemini has agreed to pay a $5 million fine to settle allegations by the CFTC that it misled regulators during its bid to launch the first US-regulated Bitcoin futures contract. The exchange has also announced its exit from the Canadian market and expansion in Singapore, highlighting the ongoing regulatory shifts in the crypto industry.
Source: Cryptoslate.com
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