Gemini Introduces Crypto Derivatives Platform Outside US as Regulations Tighten

As the regulatory crackdown on cryptocurrency exchanges in the US continues, Gemini, a leading cryptocurrency exchange, has announced the upcoming launch of the Gemini Foundation, a non-US crypto derivatives platform.

The move comes amid increasing scrutiny from US watchdogs, including the Securities and Exchange Commission (SEC), which has been targeting exchanges such as Binance, Kraken and Coinbase.

The Gemini Foundation’s first derivatives contract will be a bitcoin (BTC) perpetual contract denominated in Gemini dollars (GUSD), with an ETH/GUSD perpetual contract set to launch shortly after. The platform will allow eligible clients in 30 countries, including Singapore, Hong Kong, Brazil and South Korea, to trade spot products and derivatives. Clients can leverage their crypto assets to achieve long or short exposure to cryptocurrencies, manage risk, generate returns, and gain directional exposure.

The Gemini Foundation aims to provide a secure, liquid and cost-effective platform for derivatives trading. The place will cater to both experienced traders and newcomers to the cryptocurrency market with its advanced trading tools and user-friendly interface. The highest leverage allowed on the platform is 100x, while the default is 20x.

The platform’s fee structure will also be based on GUSD, the currency for all funding contributions. The exchange is still in its infancy, but the Gemini Foundation has announced plans to increase its derivatives offering in the coming months.

Gemini’s decision to build a crypto derivatives platform outside the US comes as US authorities tighten their grip on the industry. There is growing concern about potential risks associated with cryptocurrencies, and the SEC has begun investigating the actions of several exchanges. Gemini may avoid any legal troubles by launching a platform that is not available in the United States.

Launching a platform outside the US is a big deal for business, and Gemini is one of the most popular exchanges in the country. The viability of the platform has yet to be determined, but it is clear that the bitcoin market is undergoing rapid change and companies are looking for ways to adapt. Gemini’s decision to build a platform outside the US is an attempt to capitalize on this development and expand into other areas.