The regulatory framework has tightened significantly in the United States for crypto platforms. To the point of scaring away Gemini, the platform more open to regulators? Or so it would seem, as the Winklevoss brothers have announced the opening of their European HQ in Ireland.
Gemini exports to Ireland to create a local base
This is a home base to tackle the European market, not a Gemini move, but it’s still notable. The Winklevoss Brothers have always shown themselves to be particularly open to regulation. But the regulatory environment is particularly hostile at the moment in the United States, at a time when Joe Biden’s government intends to curb the ardor of the crypto industry.
The Winklevoss brothers therefore chose this moment to begin settling in Europe. Gemini HQ will be located in Dublin, in order to take advantage of an advantageous tax and regulatory framework. The Republic of Ireland is indeed known for having succeeded in attracting the Tech giants in particular thanks to this type of benefit.
Congratulations @Gemini -the first firm registered by the Central Bank of Ireland as a Virtual Asset Service Provider. This is significant for Ireland as the Government focuses on innovation as a driver of growth. I wish Gemini every success as they build their team in Ireland. pic.twitter.com/Y3WULIqwNc
—Leo Varadkar (@LeoVaradkar) May 25, 2023
The Prime Minister of Ireland, Leo Varadkar, welcomed this initiative, and underlined the innovation capabilities of the cryptocurrency industry. Cameron Winklevoss, for his part, recalled that he wanted sound regulation, and that the MiCA regulation was in his view appropriate:
“We believe that MiCA is common sense regulation.»
As a reminder, MiCA is an encompassing European regulatory framework, which governs the way in which trading platforms must collect user data.
👉 Do not miss our guide – How to buy Bitcoin in 2023?
Buy crypto on eToro
Towards a European exodus from crypto platforms?
Gemini is not the only platform from the United States to feel constrained across the Atlantic. As the Securities and Exchange Commission (SEC) has unleashed an unprecedented campaign in recent months to muzzle crypto companies, other territories begin to look like havens. Coinbase, which is in full legal trouble with the SEC, has announced the creation of an international hub in Bermuda.
On the Binance side, registrations with the financial authorities of several European countries have been linked. The largest platform apparently wants to set foot on the Old Continent to counterbalance its presence in the United States. This concern was underscored by rival Coinbase, which claimed in September 2023 that an expansion into other countries was “almost an existential priority».
It is therefore conceivable that the trend will continue. For the ecosystem this could be a guarantee of decentralization : it is indeed still very much centered around the United States. It remains to be seen whether the trend initiated by MiCA will continue, and whether regulations will not tighten as gradually in Europe.
👉 Listen to this article and all other crypto news on Spotify
Our service dedicated to cryptocurrency investors. Get real-time analytics and optimize your crypto portfolio.
Source : Leo Varadkar through Twitter
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.