US-based cryptocurrency exchange Gemini announced on April 21 the imminent launch of its derivatives platform outside of the US The move comes amid a tightened and uncertain regulatory environment for crypto companies in the country.
The offshore unit, called Gemini Foundation, will serve users in Singapore, Hong Kong, India, Argentina, Bahamas, Bermuda, British Virgin Islands, Bhutan, Brazil, Cayman Islands, Chile, Egypt, El Salvador, Guernsey, Israel Serving Jersey, New New Zealand, Nigeria, Panama, Peru, Philippines, Saint Lucia, Saint Vincent and the Grenadines, South Africa, Korea, Switzerland, Thailand, Turkey, Uruguay and Vietnam. It will not serve US customers. The platform's first derivatives contract will be a Bitco in (BTC) perpetual contract denominated in Gemini Dollar (GUSD), followed by an ETH/GUSD perpetual contract.
Eligible customers will be able to trade spot and derivative products, as well as exchange USD and USD Coin, Convert to GUSD at a 1:1 ratio. Fees, profits and losses will also be processed in GUSD. The default leverage is 20x and the maximum possible leverage is 100x. Unlike traditional futures contracts, perpetual contracts never expire. Perpetual futures trading is not regulated by the Commodity Futures Trading Commission, and exchanges that offer cryptocurrency futures contracts, such as BitMEX, are not available to US customers.
A few days ago, Gemini revealed plans to establish a new engineering center in India. The exchange's founders, Tyler and Cameron Winklevoss, recently announced that Gemini has “big plans for international growth in the APAC region this year.” Earlier this month, Gemini mini filed a pre-registration with the Ontario Securities Commission to become a restricted dealer in Canada.
Gemini has come under scrutiny by US authorities, with the New York State Department of Financial Services reportedly investigating the exchange over claims that many users believe assets in their Earn accounts are protected by the Federal Deposit Insurance Corporation. Gemini's E arn program halted withdrawals in november after its operating partner, Genesis, described “unprecedented market volatility.” In January, the company filed for Chapter 11 bankruptcy protection. Reports at the time suggested that as much as $900 million in Earn user funds may have been locked. The SEC also ac cused the exchange of offering unregistered securities through Earn in January.
