Gemini, the cryptocurrency exchange has announced the establishment of a new non-US crypto derivatives platform called the Gemini Foundation. The platform will offer consumers in regions like Hong Kong and Singapore access to a BTC/GUSD perpetual contract. It also plans to add a perpetual ETH/GUSD contract in the future.
1/ Introducing Gemini Foundation – a non-US crypto derivatives platform.
Coming soon…https://t.co/HtFHHfAP8d
— Gemini (@Gemini) April 21, 2023
Gemini Foundation May Face Oversight from US Authorities Despite being Outside the US
The Gemini Foundation will use Gemini dollars (GUSD) as the currency for funding payments, fees, charges, profits, and losses. Customers who are eligible for this offer will not be charged any additional fees to convert USD and USDC into GUSD on a one-to-one basis, and vice versa. The registration channel is already available for use on this platorm.
The move comes at a time when regulators are becoming stringent about cryptocurrencies, and Gemini has faced its own challenges. In January, the Securities and Exchange Commission (SEC) filed allegations against the firm, claiming that it had sold unregistered securities.
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Despite being headquartered outside of the US, the Gemini Foundation may still be subject to oversight from US authorities. The Commodity Futures Trading Commission (CFTC) recently filed a lawsuit against Binance, the largest crypto exchange, for alleged infractions, despite its location abroad. Similarly, Sam Bankman-Fried, former CEO of FTX, which is headquartered in the Bahamas, is facing criminal accusations in the US.
Gemini Foundation launch seen as significant Development in Crypto Industry
Gemini has emphasized that the Gemini Foundation will not be accessible to users in the US. However, the company may still face regulatory challenges, particularly as cryptocurrencies and their associated infrastructure continue to face increased scrutiny from governments around the world.
Gemini has a history of innovation in the crypto space. The launch of the Gemini Foundation is likely to be seen as a significant development by those in the industry. However, it remains to be seen how successful the new platform will be, particularly in light of the controlling challenges faced by the broader cryptocurrency industry.
Although Gemini has made it clear that customers in the United States would not be able to access the Gemini Foundation, the crypto sector as a whole continues to be subject to greater regulatory scrutiny from governments in a variety of countries. It remains to be seen how successful the new platform will be, particularly in light of these challenges.