ECNETNews has learned that crypto exchange Gemini is withdrawing from the Canadian market, a move that follows the departure of several other platforms due to stringent regulations in the country.
Canadian users of the exchange have received notifications urging them to withdraw their funds by December 31, providing a 90-day window to relocate their assets.
In a notice dated September 30, Gemini stated that all Canadian accounts would be closed by the deadline, with only limited exceptions. Users are being advised to withdraw both their cryptocurrency and fiat balances.
This decision comes as a surprise, especially as Gemini previously regarded Canada as a crucial market for its global expansion strategy. The company’s exit reflects a growing trend among major exchanges, including Binance, OKX, dYdX, and Bybit, all of which have faced challenges in adapting to Canada’s regulatory landscape.
These platforms have cited the complexities and costs associated with compliance as significant reasons for their market exit. Meanwhile, global platforms such as Coinbase, Crypto.com, and Kraken continue to operate within Canada.
Increasingly Strict Regulations
The crackdown on the crypto market began in February 2023, when Canadian Securities Administrators mandated that all exchanges in the country sign legally binding pre-registration agreements. This was in addition to existing regulations that prohibited margin trading for Canadian users.
While these measures aim to enhance investor protection and increase transparency, they have also introduced stringent limitations on various crypto activities. Notably, the CSA has classified certain stablecoins as securities or derivatives, preventing exchanges from offering these assets without prior approval—an especially challenging regulation for many platforms.
Some exchanges, including Bybit and KuCoin, faced penalties from the Ontario Securities Commission for non-compliance with registration requirements.
Although Gemini complied with initial regulations by submitting its pre-registration in April 2023, it ultimately decided to exit the Canadian market. With each departure, Canadian users are left with fewer options to access the decentralized market as regulatory pressures continue to increase.
In a further development, on April 17, 2024, the Canadian government unveiled a new Crypto-Asset Reporting Framework, which will take effect in 2026. This framework will require all cryptocurrency service providers to submit detailed transaction data annually and disclose client-specific information, including names, addresses, and taxpayer identification numbers.
