Gemini to shut down Canadian accounts, users given 90-day ultimatum to withdraw funds

American cryptocurrency exchange Gemini has announced that it will close all customer accounts in Canada by the end of 2024, giving users a 90-day window to withdraw their funds. According to an email sent on September 30, the platform informed its Canadian customers that all accounts would be closed by December 31, 2024.

Users have until that date to withdraw their assets from the platform. The email stated.

Effective December 31, 2024, Gemini will close all customer accounts in Canada, with limited exceptions. As a result, we will be closing your Gemini account.

– Gemini

Gemini files pre-registration in response to new Canadian regulations

This abrupt decision comes just months after Canadian financial regulators introduced new regulations for crypto exchanges operating in the country. On February 22, the Canadian Securities Administrators (CSA) published a notice mandating that all crypto asset trading platforms sign a legally binding pre-registration undertaking to continue their operations in Canada.

As part of this framework, the CSA set a deadline of April 30, 2024, after which registered crypto trading platforms (CTPs) could no longer allow clients to buy, deposit, or enter into contracts for value-referenced crypto assets (VRCAs) that replicate the value of a single fiat currency unless they comply with the terms laid out in Staff Notice 21-333. 

This deadline was initially extended to October 31, 2024, and has now been pushed further to December 31, 2024, providing additional time for CTPs to comply or propose alternatives to meet investor protection concerns.

CSA provides update to crypto asset trading platforms about value-referenced crypto assets: https://t.co/YYXkfF8Dbd pic.twitter.com/MM2Fr5nAP6

— CSA_News (@CSA_News) September 26, 2024

Gemini quickly adjusted to the new rules by submitting its pre-registration on April 13th. A spokesperson emphasized that Canada  was “one of the most important and developed markets in the Americas” and had played an “essential role in Gemini’s international expansion.“

While Gemini tried to address the situation, OKX and other significant exchanges, such as Binance, dYdX, and Bybit, have also announced their withdrawal from the Canadian market.  

Canada lags in stablecoin regulation while the CSA warns of crypto risks

Some international governments are developing regulatory frameworks for stablecoins; however, Canada has yet to establish a clear structure for these assets.

The CSA encouraged investors to be aware of the risks of crypto assets, which may be highly volatile, unlike traditional fiat currencies such as the Canadian or US dollar. The agency has added more information and instructional resources to its investor tools crypto assets page as it works to coordinate policies throughout Canada’s financial markets.