Gemini, the US-based crypto exchange owned by the Winklevoss brothers, has launched its offshore crypto derivatives trading platform called the Gemini Foundation, which was announced less than two weeks ago.
The platform is available in over two dozen countries, including Hong Kong, India, Switzerland, Brazil, Turkey, Singapore, and Vietnam. However, it is not available in the United States, United Kingdom, or the European Union. Retail and institutional traders can access the platform, which allows them to trade Bitcoin perpetual contracts denominated in the exchange’s GUSD stablecoin using up to 100x leverage. The company also plans to launch an ETH/GUSD perpetual contract in the coming weeks.
Gemini and Coinbase Expand Their Crypto Derivatives Offerings Offshore
Gemini Foundation provides customers with a capital-efficient, highly available, and trusted venue to trade derivatives. The platform combines powerful trading tools with an elegant user experience and is purpose-built for both individuals and institutions. The new derivatives exchange is based in Singapore, according to a report from Fortune. Gemini also revealed that it will be expanding its derivatives offerings with additional perpetual contracts, dated futures, and options in the coming months.
Customers will have to convert their USD and USD coins to GUSD on a 1:1 basis in order to fund their trading account. Perpetual funding payments will have to be made exclusively in GUSD. The platform will also introduce spot products in the future.
Gemini’s global push comes at the same time as Coinbase’s announcement of its Bermuda-based crypto derivatives exchange, Coinbase International Exchange. The lack of regulatory clarity in the US and the hostile stance of regulators like the Securities and Exchange Commission (SEC) is partly responsible for the American exchanges’ global push. Both companies have chosen offshore locations for their derivatives exchanges to avoid regulatory hurdles in their home countries.
In conclusion, the launch of the Gemini Foundation shows the increasing interest of crypto exchanges in expanding their presence globally. Gemini and Coinbase are among the major exchanges that have taken a bold step in this direction.
It is also evident that regulatory clarity is a significant factor pushing these exchanges to launch offshore derivatives exchanges. The move to offshore locations highlights the need for regulatory authorities in various countries to provide clarity on the regulatory framework surrounding cryptocurrencies and their derivatives.
