The crypto exchange Gemini will close all customer funds in Canada by the end of the year.
The exchange urged users, with limited exceptions, to withdraw their funds within 90 days.
This sudden move was taken after the government imposed new regulatory guidelines.
Gemini, a New York-based crypto exchange, has announced the closure of all its customer accounts in Canada by the end of the year. The exchange has urged its users, with limited exceptions, to withdraw their funds within 90 days.
On Monday, the exchange sent an email to its users stating that it would cease operations from December 31, 2024. It urged its users to withdraw their funds from the platform within the specified date to avoid further risk. Additionally, the exchange provided the necessary steps to ease fund transfers.
BREAKING: Gemini crypto exchange is officially CLOSING in Canada! 
Forcing us to close our accounts and withdraw funds!
Absolute trash! 
pic.twitter.com/RXuRlh6gYa
— MASON VERSLUIS (@MasonVersluis) September 30, 2024
The crypto exchange advised the users to withdraw their crypto assets to an external wallet address and deposit their fiat currency into their bank account. Further, the email provided instructions for those users who do not have a bank account. The sudden exit of the exchange was taken owing to the new regulatory guidelines by the Canadian government.
On February 22, 2023, the Canadian Securities Administrators (CSA) imposed new guidelines for cryptocurrency exchanges and trading platforms in the country. The notice stated that the unregistered platforms must provide a ‘pre-registration undertaking’ to their main regulator. The deadline was set for 30 days.
This legal bond would bind the platforms to the country, thereby making them adhere to their regulatory guidelines to continue their trade. If the crypto assets platforms fail to comply, the users of the concerned platform(s) will be removed. Further, access to their products or services would be restricted.
Following this notice, many top crypto platforms exited the Canadian market, including Binance, OKX, Paxos, etc. Interestingly, Gemini adhered to the requirement, considering that Canada had played a pivotal role in expanding its horizons internationally and filed its pre-registration form on April 13, 2023.
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