On April 12, cryptocurrency exchange Gemini announced it had filed a pre-registration undertaking with the Ontario Securities Commission, which oversees capital markets in Canada’s most populous province. The pledge is a prerequisite to becoming a restricted trader in Canada and is required for all cryptocurrency exchanges wishing to do business in the country. Cynthia Del Pozo Garcia, director of strategy and corporate development at Gemini, wrote:
"As one of the most important and developed markets in the Americas, Canada has played an important role in Gemini's international expansion." According to Del Pozo Garcia, Gemini holds “a number of licenses around the world,” such as national money transmitter licenses, an e-money license from the UK’s Financial Conduct Authority, and an e-money license from the Central Bank of Ireland. “In connection with our license, Gemini is required to undergo an annual audit of our financial statements and undergo a bank inspection by the New York Department of Financial Services,” the director said.
On Feb. 22, the Canadian Securities Administration (CSA) issued a notice requiring all crypto asset trading platforms to sign a legally binding pre-registration undertaking to continue operating in the country. Among the many restrictions, exchanges will be prohibited from allowing Canadian customers to purchase or deposit stablecoins without prior approval from the CSA. The notification section reads as follows: "In light of the recent bankruptcy involving a number of CTPs, including Voyager Digital, Celsius Network, FTX Group Inc., BlockFi and Genesis Global (collectively the recent CTP bankruptcy events), we are introducing significant new investor protections to standard form Prudential .”
Since the new rules took effect, cryptocurrency exchange OKX has announced that it will cease operations in Canada in June 2023. Meanwhile, fintech firm Paxos said it would exit Canada, citing regulatory uncertainty. Binance and Kraken have since said they submitted the pre-registration commitments needed to continue operating in the country.
