Gemini Launches Non-US Crypto Exchange

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Gemini, the cryptocurrency exchange founded by the Winklevoss twins, launched an international derivatives trading platform in response to a US nationwide crackdown on crypto assets.

Dubbed the Gemini Foundation, the non-US derivatives exchange will allow its clients to trade cash and derivatives products that have a somewhat risky nature. A Bitcoin perpetual contract denominated in Geminis stablecoin GUSD has already been introduced as its first derivative contract, and will soon be followed by an Ether (ETH) perpetual contract.

A perpetual contract is a type of futures contract that does not have an expiration date. Instead, it’s designed to be held indefinitely, as long as both parties meet their margin requirements. Perpetual contracts are commonly used in cryptocurrency trading and are similar to traditional futures contracts, but without an expiration date.

According to an announcement, Gemini Foundation will allow eligible clients to leverage their crypto assets to gain long or short crypto exposure to manage risk, generate returns, and gain directional exposure. Eligible clients will be able to trade both cash and derivative products and execute all their trading strategies within one secure and reliable platform.

The Geminis offshore exchange does not integrate any users from the United States as the new division will only be accessible to traders from the following countries:

Singapore, Hong Kong, India, Argentina, Bahamas, Bermuda, British Virgin Islands (BVI), Bhutan, Brazil, Cayman Islands, Chile, Egypt, El Salvador, Guernsey, Israel, Jersey, New Zealand, Nigeria, Panama, Peru, Philippines, Saint Lucia, Saint Vincent and the Grenadines, South Africa, South Korea, Switzerland, Thailand, Turkey, Uruguay and Vietnam.

Rival exchange Coinbase also plans to launch a new overseas platform as part of an aggressive expansion outside the United States. However, the nature of Coinbases’ overseas operations, or their location, remains unclear.

The expansion of US exchanges comes at a tumultuous time as US regulators look to the industry over recent catastrophic incidents, including the fall of FTX. Additionally, crypto-friendly U.S. banks such as Silvergate and Signature Bank have failed after encountering financial problems.

Gemini is being sued by investors for the sale of its interest-bearing crypto products. The complaint alleges that the Geminis Earn program failed to register its high-yield products as securities under US securities law.

Nonetheless, Gemini has reached an agreement with bankrupt crypto lender Genesis and its parent company Digital Currency Group that includes a viable restructuring plan. The deal will see Barry Silbert-owned DCG exchange its outstanding $1.1 billion note due 2023 for convertible preferred stock.

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