By Norah ODonnell
On April 21, the American crypto exchange Gemini revealed plans to launch a crypto derivatives platform for offshore markets. The decision to expand the delivery of Gemini’s crypto services was prompted by the ongoing regulatory clampdowns in the US.
The Gemini team outlined the countries in Africa, Asia, Europe, America, and Oceania where the new derivates platforms will operate. From the Gemini list, only 31 countries could access the derivatives platform.
Eligible Customers for Gemini Derivatives Platform
The report restated that Gemini users in the United stated would be restricted from accessing the derivative platform. However, the report disclosed that customers from North America including the Bahamas and Bermuda will be allowed to complete their crypto transactions on the new platform.
The April 21 announcement proclaimed that Gemini’s crypto derivatives platform would allow the user to trade with Bitcoin (BTC) and Ether (ETH) perpetual futures. The crypto exchange announced that users would first trade with BTC after the launching of the platform. The BTC will be backed with the Gemini dollar (GUSD).
Later the developers will integrate the Ethereum option ETH/GUSD on the derivatives platform. In light of the Gemini announcement, the new platform will allow users to trade spot and derivative options.
On the derivative platform, the developers have integrated a conversion category to enable the user to exchange their digital assets in US dollars and USD Coin (USDC) to the new GUSD currency seamlessly. The conversion rate of USDC to GUSD will be at a ratio of 1:1.
Characteristics of Gemini’s New Platform
After exploring the derivatives platform, it was evident that most transactions, including fees, income, and losses, will be transacted through the GUSD. The platform has integrated the default leverage limits that range from 20X to 100X.
Reportedly, the Gemini developers have leveraged their proprietary tools to create a unique platform for the perpetual contract without expiry. The crypto exchange’s latest development will rival the traditional futures contract, which can only be utilized within the stipulated time.
On the other hand, Gemini’s perpetual futures provided to offshore markets will be supervised by foreign watchdog agencies. The new platform will be exempted from Commodity Futures Trading Commission (CFTC) requirements since it operates outside the US.
Over the past, the Commodity Futures Trading Commission (CFTC) has been controlling the issuance of traditional futures in the US. However, CFTC has limited powers to monitor the operations of America crypto firms such as BitMEX operating in the overseas market.
Recounting an April 20 report issued by Gemini founders Winklevoss brothers disclosed that the crypto exchange has “Big Plans” for the Asian market. Tyler and Cameron Winklevoss stated that Gemini would establish an engineering centre in India and create a strong technical workforce.
Gemini’s Expansion to New Markets
After executing the Indian plans, the Gemini team will expand to Singapore to release a go-to market (G2M). In their address, the Winklevoss twins referred to crypto as borderless and limitless.
Following this, Gemini’s co-founders announced plans to broaden their global market presence. In a previous report, the crypto exchange submitted pre-registration documents to the Ontario Securities Commission (OSC). This report revealed that the crypto exchange plans to explore suitable opportunities in a restrictive environment in Canada.
Besides the intended expansion, the crypto exchange has faced legal charges after suspending its Earn account last November. Initially, Gemini partnered with Genesis to provide the earn products to the customers.
Following the fallout of the Bahamian crypto exchange FTX, Genesis filed for Chapter 11 of bankruptcy protection. The unexpected liquidation of crypto lender Genesis disrupted the provision of Gemini’s earn products which resulted to the suspension of the withdrawal option on the earn platform.