Crypto Exchange Gemini Bags Irish E-money License
Gemini Payments, the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has been granted an electronic money (e-money) license by the Irish Central Bank. Digital cash can now be issued in the country by the company, joining the ranks of Facebook and Google.
Central Bank of Ireland Says Yes
According to a report on Monday in The Irish Times, Gemini is the first fintech company to be given permission by the Central Bank of Ireland to issue e-money since late-2020. In early 2020, the exchange had applied for a license locally, anticipating Brexit’s impact.
The license comes on the heels of Gemini’s establishment of an Irish base in 2021, as the company wants to expand its activities throughout the European Union via the country. The e-money license enables the company to offer a wider range of crypto and NFT services in the country.
Irish users can already trade cryptocurrencies on Binance and Coinbase, two of the most prominent cryptocurrency exchanges in the world.
Ireland’s laws on cryptocurrencies are rather restricted; however, they are mostly based on European regulations. Cryptocurrencies are not legal tender in the country, and exchanges must register with the central bank if they wish to operate.
Regulatory Compliance a Priority for Gemini
A key differentiator for Gemini, which was launched by the Winklevoss twins in 2014, has been its emphasis on regulatory compliance in order to distinguish itself from its competitors. With approval from the Financial Conduct Authority (FCA) to issue e-money in the United Kingdom, it is one of the few cryptocurrency exchanges that is permitted to do so.
Additionally, the company is one of the first cryptocurrency businesses to be registered with the New York State Department of Financial Services, which is widely considered as one of the world’s most stringent financial regulators, according to industry experts.
In order to conduct transactions on the exchange, Gemini uses its own stablecoin, the Gemini dollar.
The Winklevoss twins, Cameron and Tyler, are best known for their lawsuit against Facebook founder Mark Zuckerberg in the early 2000s. However, they’ve recently started speaking out in favor of crypto as well.
Crypto Regulation on the Rise
Crypto business has been thriving in Ireland, but there has not been much activity in the formation of their regulations. According to a report published last year by the Irish Independent, representatives of BNY Mellon met with Irish Minister of State at the Department of Finance Seán Fleming in May to try to convince the government of the importance of adopting national crypto regulations while the European Union’s rules for the sector are still being considered.
In terms with Fleming’s briefing notes for the department, BNY Mellon said:
“While we recognize that the European Commission’s Crypto Asset Markets (MiCA) proposal aims to create a separate regime for crypto assets at the European level, given the timeframe for this legislative action to come into effect, the national regimes quickly began to fill up the gap within their respective national jurisdictions and we believe Ireland should follow suit.”
