Gemini Announces Launch Of Offshore Crypto Derivatives Exchange

Gemini has officially announced the launch of the Gemini Foundation, the highly anticipated offshore crypto derivatives platform. 

The new exchange has been launched in 30 countries. However, it is not available to users in the United States of America, the United Kingdom, and the European Union. 

Highly Anticipated Offshore Derivatives Platform Goes Live 

The launch of the offshore crypto derivatives trading platform comes just weeks after it was first announced in April. According to Gemini, the offshore derivatives platform Gemini Foundation will allow users to begin trading with Bitcoin (BTC) perpetual contracts. These will be denominated in Gemini Dollars (GUSD) and will offer users 100x leverage. Gemini stated in its blog post, 

“Gemini Foundation — a non-US derivatives platform — is now live and open for trading to customers in all available jurisdictions. Start trading the BTC perpetual contract denominated in Gemini dollars (GUSD) with up to 100x leverage today.”

The exchange also stressed that Gemini Foundation would not be available to users based in the United States of America, the United Kingdom, and the European Union. However, the crypto derivatives platform is available in several other jurisdictions, 30 to be exact. These include Hong Kong, Singapore, Argentina, Bahamas, Bermuda, India, Bhutan, British Virgin Islands (BVI), Cayman Islands, Chile, Brazil, El Salvador, Guernsey, Egypt, Jersey, Israel, Nigeria, New Zealand, Peru, Panama, Philippines, Saint Vincent & Grenadine, Saint Lucia, South Africa, Switzerland, Turkey, Thailand, Uruguay, and Vietnam. 

Gemini has also stated there are plans to launch an ETH/GUSD perpetual contract in the next few weeks. 

“Gemini Foundation offers customers a capital-efficient, highly available, and trusted venue to trade derivatives. Purpose-built for both individuals and institutions, Gemini Foundation, combines powerful trading tools with an elegant user experience. In the coming months, we will be expanding our derivatives offering with additional perpetual contracts, dated futures, and options trading.”

New Platform Based In Singapore 

According to one report, the new Gemini’s offshore derivative platform is based in Singapore and there are plans to introduce spot products as well. To fund their trading accounts on the platform customers will be required to convert their USD into GUSD and USD Coin in a 1:1 basis. However, perpetual funding payments will have to be made exclusively in GUSD. The news of the platform’s launch comes on the same day Coinbase announced the launch of its own crypto derivatives exchange, the Coinbase International Exchange, based out of Bermuda. 

Regulatory Issues Driving Exchanges Out 

Cryptocurrency exchanges based in the United States of America have increasingly started moving abroad thanks to growing regulatory uncertainty and an increasingly hostile attitude from the United States Securities and Exchange Commission (SEC). The SEC has ramped up its scrutiny of the crypto space and recently filed regulatory actions on Beaxy and Bittrex. The SEC also brought charges against Gemini for its now-defunct Earn program. 

An Update On Earn  

Gemini provided users with an update on the status of its Earn program, stating that it had agreed to a 30-day mediation process to iron out a final resolution with Genesis, the Digital Currency Group (DCG), the Creditor Committee, and the Unsecured Creditors Committee (UCC). Gemini added that it was supportive of mediation between all parties and would work with everyone involved to bring the matter to an acceptable resolution. However, there have been times when Gemini has expressed its frustrations with the slow pace of progress. Gemini stated on its Twitter account, 

“Earn update: This past week, Genesis, Digital Currency Group (DCG), the Unsecured Creditors Committee (UCC), the Creditor Committee, and Gemini agreed to start a 30-day mediation process to drive to a final resolution as soon as possible. Gemini is supportive of mediation and working with the parties to bring this to a conclusion.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.