By Gemini, the New York-based digital currency exchange founded by Cameron and Tyler Winklevoss, is looking to expand its operation in the United Kingdom.
The Winklevoss twin’s exchange, aptly named Gemini, currently operates in the United States, Puerto Rico, Canada, Hong Kong, Singapore and South Korea. Although the UK already has full access to all of Gemini’s order matching engines, Gemini is looking to grow its operations across the Atlantic.
Gemini is on an aggressive expansion path both domestically and internationally. With Gemini currently seeking regulatory approval in Hawaii, as well as other jurisdictions around the world, it seems that they are planning on becoming a truly global platform. According to Gemini, the platform continues to “explore potential jurisdictions around the globe to provide a best-in-class digital asset exchange and custodian which will enable growth and infrastructure to the entire digital asset community”.
Crossing the Pond
The Financial Times recently revealed that Gemini is serious about its expansion into the UK market and has already taken steps to determine the feasibility of such an expansion. In order to operate in the UK, Gemini will have to apply to the Financial Conduct Authority (FCA), the UK’s regulatory body, for an e-money license which will authorize Gemini to open an exchange in the UK.
Recently, the FCA called on regulators to have a balanced approach to the digital asset market which allows for innovation while still protecting consumers and mitigating risks. The UK’s members of parliament were more critical however, alleging that regulators need to step up their efforts to regulate the “wild west” cryptocurrency industry.
This call for more severe regulation of the cryptocurrency sectors within the UK will not dampen Gemini’s outlook on its expansion as this crypto exchange giant is not averse to complying with regulations. Gemini prides itself on being a licensed digital asset exchange and custodian that allows individuals and institutional investors to buy, sell, and store digital assets in a regulated, secure, and compliant manner.
Gemini is already subject to rigorous regulatory oversight by the New York State Department of Financial Services (NYDFS) as well as banking compliance standards and strict fiduciary obligations set down by the Bank Secrecy Act and the New York Banking Law. As one of the few cryptocurrency exchanges to receive authorization to operate in terms of New York’s BitLicense framework, Gemini is no stranger to meeting compliance requirements. Gemini has even gone so far as to partner with Nasdaq and its SMARTS trade monitoring technology in order to help detect and police its markets for illegal trading activities and manipulation in the market.
International Competition
In expanding to the UK Gemini will place itself in greater competition internationally. One of its biggest competitors, Coinbase, is the largest cryptocurrency exchange in the US and has already moved into the UK market by securing a crucial partnership with Barclays Bank.
In addition to Gemini, Bithumb, South Korea’s largest cryptocurrency exchange, is reportedly also planning a move to the UK and will apparently expand into the UK by the end of this year.
Within the next year Gemini, Coinbase and Bithumb will most likely be major competitors in the UK market. Once Gemini has established a base of operations within the UK, it is likely that we may see further expansion from the Winklevoss twins into European markets.
What do you think the move to the UK will do to the crypto sector? How will opening the gates into Europe affect the crypto industry? Give us your thoughts in the comments below.
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