Due to the uncertainties of the regulatory environment in the USA, some stock markets continue to open abroad.
US-based cryptocurrency exchange Gemini will open a derivatives exchange in another location due to regulatory uncertainties. The company made a statement on the subject.
Regulatory Environment in the U.S. Challenges Exchanges
Regulatory uncertainties in the US continue to put stock markets in a difficult position. After Coinbase established an offshore derivatives exchange, Gemini is also preparing to establish a derivatives exchange abroad.
This decision, announced by the exchange, came after US regulators became stricter on cryptocurrencies. In January, Gemini and Genesis were accused by the Securities and Exchange Commission (SEC) of selling unregistered securities. However, just because Gemini is outside the US doesn’t mean it’s out of reach of US regulators. Other major crypto exchanges such as Binance also continue to operate outside of the US. In addition, it still draws the attention of US regulators such as the CFTC.
Gemini, like many companies operating in the cryptocurrency market, is subject to regulatory pressures. It is trying to escape these pressures by opening a derivatives platform outside the US. However, as international regulations change, the regulation of such platforms may also become more and more stringent.
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