Gemini Trust Company, the American crypto exchange owned by billionaire twins Tyler and Cameron Winklevoss, has announced plans to expand its operations in Asia and establish a non-U.S. crypto derivatives platform. This move comes as U.S. crypto businesses face increased regulatory scrutiny, with the Securities and Exchange Commission (SEC) intensifying enforcement actions in the cryptocurrency sector.
According to a blog post by Gemini, the new derivatives exchange will be accessible in 30 territories, excluding the U.S. Initially, it will offer Bitcoin and Ether perpetual contracts denominated in the Gemini dollar (GUSD), a stablecoin.
Gemini’s announcement follows a similar move by Coinbase Global Inc., the largest U.S. crypto exchange, which recently obtained a virtual-asset license in Bermuda. Reports suggested that Coinbase might also establish a derivatives platform in Bermuda. Coinbase CEO Brian Armstrong has even considered relocating the company’s headquarters out of the U.S. due to the increased regulatory pressure on the crypto industry.
The SEC, led by Chairman Gary Gensler, has faced criticism from the crypto community for its stringent approach to regulation. Gensler has argued that he has never seen an industry so consistently violating securities laws.
As Coinbase prepares for a legal battle with the SEC, Armstrong has accused the regulatory body of causing “untold harm” to the U.S. by choosing to regulate the digital asset space through enforcement rather than proactive collaboration between regulators and industry leaders.
In contrast to the U.S., the European Union has made progress in regulating the crypto industry, while places like Hong Kong and Dubai are actively promoting the development of crypto hubs.
