Crypto exchange Gemini plans to establish a crypto derivatives platform outside the US.
According to the report by The Information, Gemini’s new exchange will primarily feature perpetual futures trading services. Citing unnamed sources, the report claimed that Gemini has contacted several trading companies to act as market makers for its new platform in recent months.
Gemini intends to release this platform overseas because US regulators imposed a ban on trading perpetual futures. This is because regulators consider it a risky instrument due to its lack of maturity date, which allows investors to execute high-leveraged trades.
The news came as US regulators increased their crackdown on crypto firms. In March alone, the SEC issued a Wells notice against Coinbase, with the CFTC following suit by suing Binance and its CEO.
It is worth noting that Gemini is not the only firm looking to expand operations outside the US. Shortly before Coinbase was targeted by the SEC, reports emerged that the firm aims to launch a global trading platform.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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