The well-known American cryptocurrency exchange and digital asset custodian Gemini Trust Company, LLC, has taken a step toward extending its reach into the Canadian sector. The business disclosed that it has submitted a pre-registration undertaking to Canada’s Ontario Securities Commission (OSC), which, if accepted, will enable it to conduct business lawfully there.
The timing of Gemini’s relocation coincides with an increase in governmental scrutiny of cryptocurrencies in the US, which has prompted several companies involved in the industry to look for chances elsewhere. One of the top marketplaces for cryptocurrencies in the Americas is the Canadian market, which attracts the attention of companies trying to grow.
“As one of the most important and developed markets in the Americas, Canada has played an essential role in Gemini’s international expansion,“ said Gemini’s director of strategy, Cynthia Del Pozo Garcia.
The Canadian Securities Administrators published a notice which requires all crypto platforms to sign a legally binding pre-registration to continue operating in the country. The notice stated:
“In light of recent insolvencies involving a number of CTPs, including Voyager Digital, Celsius Network, the FTX group of companies, BlockFi, and Genesis Global (collectively recent CTP insolvency events), we are introducing important new investor protection provisions into the standard form of PRU.“
Many exchanges announced they would cease operations in Canada by June 2023 after the regulations took effect.
Moreover, the decision by Gemini to pre-register with the OSC is an important development in the company’s growth strategy. It can operate legally in Canada if registered, which will create new chances for the business and strengthen its position in the expanding bitcoin sector.