• US-based cryptocurrency exchange Gemini is planning to open an offshore derivatives platform.
• The platform’s first product would be a BTC perpetual contract denominated in GUSD, which is Gemini’s stablecoin with its value pegged to the United States dollar.
• The derivatives trading platform will be available to users in a number of countries such as Hong Kong, India, Israel, Singapore, Thailand etc.
Gemini Launching Offshore Derivatives Platform
US-based cryptocurrency exchange Gemini has announced plans to open an offshore derivatives platform. This move comes as regulatory pressures continue to grow in the United States, leading to a mass withdrawal of many crypto organizations.
First Product: BTC Perpetual Contract Denominated In GUSD
The new platform’s first product would be a BTC perpetual contract denominated in GUSD – Gemini’s stablecoin with its value pegged to the United States dollar. Following this, an Ethereum perpetual contract (ETH/GUSD) is also expected to launch.
Available To Users In Multiple Countries
The derivatives trading platform will be available for eligible users in multiple countries such as Hong Kong, India, Israel, Singapore and others. There has yet to be any clarity on when the exact launch date will be but they have provided an email signup so people can gain priority access when it does become available.
Growing Regulatory Pressure In The US
The decision by Gemini comes as regulatory scrutiny against crypto firms continues intensifying in the US due to increasing backlash from authorities against various aspects of cryptocurrency operations. This includes investigations into fraud and security issues which are becoming more common within the industry although there have been no serious repercussions so far for most companies involved.
Overall, by launching an offshore derivatives platform outside of US jurisdiction Gemini aims to provide additional protection for its customers and ensure compliance with existing regulations while still being able operate without too much disruption from potential legal action taken against them domestically or abroad.