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Crypto Exchange Gemini Ventures Outside the US With Plans for Derivatives Platform

Jimmy Aki
Last updated: | 3 min read

Despite an ongoing legal tussle with US authorities, Winklevoss Twins-owned crypto exchange Gemini has announced the launch of a crypto derivatives platform. 

The new platform will only cater to crypto derivatives traders outside the North American nation.

BTC/GUSD Perpetual Contracts First on the Menu

In an April 21 blog post, the Gemini exchange announced the upcoming launch of a new crypto derivatives platform called Gemini Foundation. 

The US-based Bitcoin trading hub said the new derivatives platform would solely cater to investors outside the US platform.

For the first derivatives trade on Gemini Foundation, investors will be able to trade Bitcoin perpetual contracts denominated with the exchange’s famous stablecoin Gemini Dollars (GUSD). 

The announcement said it is also making plans to add ETH/GUSD perpetual contracts to its lineup of offerings and many others. 

With Gemini Foundation, crypto traders will be able to execute long or short positions using spot and derivative products. 

For its eligibility criteria, the Gemini Foundation would support 30 countries, with more additions to come. 

Some eligible regions include Singapore, New Zealand, Nigeria, Hong Kong, Bermuda, South Africa, Switzerland, and 23 others. 

There was also a noticeable absence of the United States of America (USA). For its account funding and withdrawals, customers will be able to convert their USD to GUSD on a 1:1 basis at no extra cost.

Gemini Foundation customers will be charged using the exchange’s stablecoin and will enjoy maximum leverage of 100x for both spot and derivatives trading. 

Providing more context on the Gemini Foundation experience, the Gemini team said it is purpose-built for individual investors and financial institutions. 

The upcoming crypto derivatives trading platform will offer users a capital-efficient and highly available trading experience through its powerful trading tools and elegant user experience. 

Gemini Eyeing Favorable Regulatory Climate Amid US Crackdown

Since the crypto boom of 2021, more US agencies have been paying close attention to the burgeoning decentralized economy. 

The collapse of the Terra blockchain and Bahamas-based FTX has served as cues for US regulatory authorities to pay close attention to the crypto market.

Gemini has been one of the affected crypto exchanges following the suspension of its Earn program and its legal tussle with the Securities and Exchange Commission (SEC). 

The SEC has since charged the New York-based Bitcoin exchange for offering unregistered securities through its Gemini Earn program. 

This forced the platform to stop all Earn products, and many of its customers have since lost access to their funds.

This uncertain regulatory climate and harsh crackdown on centralized crypto trading entities in the North American nation has seen the eight-year-old exchange consider other regions for its sustained operations. 

According to reports making the round, the Gemini Exchange has recently moved its engineering and operations hub to India. 

In an official statement released on April 20, the crypto exchange is looking to tap into top talents in the country by making India its first APAC station as it taps into an international market. 

Gemini’s India tech hub would participate in developing web and mobile user experiences, compliance, data pipelines, warehousing, security, and payments. 

Providing more context on this move, Gemini’s global chief technology officer Pravjit Tiwana said the India hub would be the exchange’s second-largest engineering hub behind its US operations.

Tiwana also noted that all products and features created in the Indian hub would be accessible to the exchange’s retail and institutional customers in 70+ countries. 

The Gemini platform has not been the only centralized entity eyeing life outside the shores of the United States. 

Fellow US-based Coinbase has also received a regulatory license from the Bermuda government to operate an offshore crypto exchange. 

The exchange’s Chief Executive Officer (CEO) Brian Armstrong is also lending a helping hand to the UK government as it revives its blockchain division.