Gemini Want To Launch Overseas Crypto Derivatives Exchange

Key Points:

• Gemini, the Winklevoss twins’ crypto exchange, is developing an offshore derivatives market.
• The new business is said to be largely concerned with perpetual futures.
• Gemini’s move follows the demise of the multinational crypto exchange FTX, which created greater opportunities for other trading platforms to gain market share in derivatives trading.

The Information reported Wednesday that the US-based cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss, is aiming to start an international cryptocurrency derivatives exchange, citing two individuals familiar with the situation.

The exchange would particularly provide perpetual futures, a sort of derivative that is prohibited in the United States for regular traders since it would not have an expiry date and may be traded with significant leverage, making it a high-risk product.

Nevertheless, international crypto derivatives exchanges have gotten a lot of attention in the days after the Commodities Futures Trading Commission (CFTC) filed a lawsuit against Binance, the world’s biggest crypto exchange, by trading volume. Binance was accused of violating US futures trading regulations and operating unlawfully in the US, according to the regulator.

Gemini’s move follows the demise of the multinational crypto exchange FTX, which created greater opportunities for other trading platforms to gain market share in derivatives trading. Coinbase, a cryptocurrency exchange located in the United States, is allegedly considering a similar deployment.

Coinbase, on the other hand, has its own regulatory worries, having received a Wells Notice from the US Securities and Exchange Commission (SEC), indicating an impending enforcement action. Brian Armstrong’s business has allegedly yet to decide where the new trading branch would be located but is encouraged by recent legislative changes in the UK and the EU.

The announcement of Gemini’s next initiative comes after a protracted period of uncertainty surrounding the Winklevoss twins’ firm. The Trust was especially heavily struck by FTX’s demise through its erstwhile partner, the Digital Currency Group’s Genesis. The issue, which became public at the start of the year, finally began to show indications of resolution in early February, with some preliminary agreements on the sale of DCG’s cryptocurrency lender.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News