Gemini launches non-US crypto derivatives platform amidst regulatory crackdown

As the regulatory crackdown on cryptocurrency exchanges in the United States continues, Gemini, a leading cryptocurrency exchange, has announced the upcoming launch of Gemini Foundation, a non-US crypto derivatives platform. 

The move comes amid growing scrutiny by the United States watchdogs, including the Securities and Exchange Commission (SEC), which has been targeting exchanges like Binance, Kraken, and Coinbase.

Gemini Foundation’s first derivatives contract will be bitcoin (BTC)perpetual contract denominated in Gemini dollars (GUSD), with an ETH/GUSD perpetual contract set to launch soon after. The platform will allow eligible customers in 30 countries, including Singapore, Hong Kong, Brazil, and South Korea, to trade spot and derivative products. Customers can leverage their crypto assets to achieve long or short-crypto exposure, manage risk, generate returns, and gain directional exposure.

Gemini Foundation aims to provide a secure, liquid, and low-cost platform for derivatives trading. The venue will cater to experienced traders and cryptocurrency market newcomers with its sophisticated trading tools and user-friendly interface. The platform’s highest allowable leverage is 100x, while the default is 20x.

The platform’s fee structure will also be based on GUSD, the currency for all financing contributions. The exchange is still in its infancy, but Gemini Foundation has announced plans to increase its derivatives offering in the coming months.

Gemini’s decision to build a crypto derivatives platform outside the US comes as US authorities tighten their grip on the industry. There is rising worry about the potential hazards linked with cryptocurrencies, and the SEC has begun investigating the actions of many exchanges. Gemini may sidestep any legal problems by launching an unavailable platform in the United States.

Launching a platform outside the United States is a big deal for the business, and Gemini is one of the most well-known exchanges in the country. The platform’s viability is yet to be determined, but it is evident that the bitcoin market is undergoing fast change and that businesses are looking for methods to adapt. Gemini’s decision to build a platform outside the United States is an effort to cash in on this development and expand into other areas.