Gemini expands to Australia to tap growing crypto market

US cryptocurrency exchange Gemini is set to broaden its operations in Australia with the launch of a locally registered entity, while taking a cautious approach to proposed laws that could expand regulatory oversight of the sector.

Saad Ahmed, Gemini’s head of Asia Pacific, said that crypto adoption in Australia is “quite significant, somewhere in the range of 23 to 25%,” leaving the exchange with “headroom for growth.”

To grant access to local payment rails, the exchange announced on Thursday that it has established a local corporation registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), the nation’s financial intelligence agency.

Gemini, which offers trading on a limited number of assets and has few and costly payment methods, has been accessible to Australians since August 2019 as part of its global operation.

Gemini establishes local entity to strengthen presence in Australia

The creation of a local entity marks a significant step in Gemini’s regional expansion. Ahmed stated that by using Gemini Intergalactic Australia as its registered local organization, it no longer has to tread carefully on the legal tightrope when it comes to marketing, integrating local payment rails, and providing financial services to Australians. 

“We’re changing that because we think Australia is a market that we want to be in, and it’s a market that we want to grow, so we’re going to build a local team here,” he said. The company will be based out of Sydney and has appointed James Logan, who previously led the local entities of rival exchanges Luno and Bitget, to head its Australian operation. 

According to Ahmed, the exchange is working on obtaining an Australian Financial Services License (AFSL) to offer services such as cryptocurrency staking and credit card services. “We’re not going to have all of the products that we offer in the US, for example, the credit card and staking, out of the gate, but we’re working on it,” he said. 

Gemini adopts a wait-and-see approach to Australia’s crypto regulations

While Gemini’s founders, Tyler and Cameron Winklevoss, are known for their active engagement in US policy, Saad Ahmed indicated that the company’s Australian arm will adopt a more reserved stance. 

Rather than lobbying, Gemini plans to observe the government’s consultation on new crypto regulations.

Last month, the Albanese government released draft legislation aimed at strengthening oversight of crypto exchanges and requiring companies to obtain an Australian Financial Services License (AFSL). The proposals have been met with cautious optimism by the local industry.

Ahmed noted that there will be some back-and-forth between the industry and the government for a while. He continued to say Gemini will likely take the position of just observing and seeing how things unfold over the next few months.

“There’s limited upside for us to respond to the laws that have come out,” he said. “There is an existing ecosystem here, we’re somebody new that’s coming in, and we just want to make sure that we’re building and focused on our customers.”

Ahmed added that they believed they would be well-prepared for whatever regulations come into effect and would be able to comply with them.

Meanwhile, the US Securities and Exchange Commission (SEC) has recently reached a preliminary settlement with Gemini regarding all allegations that the cryptocurrency platform failed to register a cryptocurrency asset lending program before offering it to retail investors. According to reports, the settlement resolves the agency’s lawsuit over the Gemini Earn program.

According to a letter filed in a Manhattan federal court, lawyers representing both parties indicated that the settlement would “completely resolve” the lawsuit. However, it was still subject to approval by the SEC.

Reports indicate that the lawyers requested that the US District Judge Edgardo Ramos grant them up to December 15 to submit their final paperwork and put all deadlines on hold.

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