US Crypto Exchange Gemini Eyes UK Market

Marco Green
September 26, 2018

The famous Winklevoss twins seem to be searching new markets for their crypto business.

Legislators expressed dissatisfaction with the current crypto markets, equating it to the "Wild West" but at the same time noting that the U.K had the potential to become a global focal point for the cryptocurrency industry, pushing for comprehensive regulation.

According to FT, two sources close to Gemini have stated that the major US-based crypto exchange has hired advisers to consult the company in the process of expanding into the European market. This would provide stability to the cryptocurrency market.

Gemini is legally allowed to offer custodian and cryptocurrency trading services, growing in popularity since it first received the exacting BitLicense from New York's Department of Financial Services (NYDFS) in 2015.

While most countries have sought to formulate new laws to encompass the new asset class, the MPs advised against it, stating that "bringing crypto-assets into the scope of existing regulation, instead of creating a new framework specifically for the assets, would be the quickest way of doing this". "It is subject to rigorous regulatory oversight by the New York State Department of Financial Services (NYDFS), is held to the highest level of fiduciary obligations and banking compliance standards, and must adhere to all anti-money laundering (AML) laws, know your customer (KYC) requirements, and consumer protections set forth by the Bank Secrecy Act (BSA), the New York Banking Law, and the NYDFS", Zcash Chief Executive Officer Zooko Wilcox wrote.

One of the sources also indicated that Gemini is preparing to file an application with the UK's Financial Conduct Authority (FCA), the agency that oversees the financial markets.

South Korea's largest crypto exchange, Bithumb, is also preparing to launch a cryptocurrency exchange in the United Kingdom by the end of this year, which means that by 2019, the three exchanges will compete against eachother for dominance over the local crypto market. That application is reportedly one of the steps necessary for the exchange to operate in the UK.

Gemini, which now ranks as the 61 largest cryptocurrency exchange in the world, is certainly serious about cryptocurrency expansion and creating a more lawful and genuine digital currency market. In fact, it has always prioritised compliance working with local regulators to implement improved rules to govern the global crypto exchange market. "It has formal accreditation from New York's Department of Financial Services to operate as a trust company under NY banking law and, earlier this month, was one of two companies to receive approval from the state for a digital currency pegged to the dollar".

Other reports by Click Lancashire

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