The New York-based cryptocurrency exchange founded by the Winklevoss twins is planning to expand its operations. Gemini plans to open a crypto derivative platform outside the U.S. This move comes as the demand for cryptocurrency derivatives has been on the rise, with many investors looking to hedge their investments or speculate on price movements.
The new platform, called Gemini Futures, will initially launch in Singapore, according to a statement released by the company. The platform will offer futures contracts that allow investors to bet on the future price of Bitcoin and other cryptocurrencies.
Gemini’s expansion outside the U.S.
Gemini to open a crypto derivative platform market is a natural expansion for the company, which has been focused on providing a regulated and secure platform for trading cryptocurrencies. The company has already established itself as one of the leading cryptocurrency exchanges in the U.S.
“Crypto derivatives are a natural evolution for Gemini and an area we have been keen to expand into for some time,” said Tyler Winklevoss, CEO of Gemini. “We believe that this market has tremendous potential, and we are excited to bring our expertise and experience to bear in this space.”
Singapore’s regulatory framework for cryptocurrency derivatives trading
Gemini’s to open a crypto derivative platform market also comes at a time when regulators in the U.S. are cracking down on cryptocurrency derivatives. The Commodity Futures Trading Commission (CFTC) has been taking a closer look at the market, and some exchanges have been forced to delist certain derivative products. By launching its derivatives platform outside the U.S., Gemini can avoid some of the regulatory hurdles it might face at home.
Singapore is a particularly attractive location for Gemini, as the city-state has been taking a proactive approach to regulating cryptocurrency activities. In January 2020, the Monetary Authority of Singapore (MAS) introduced a new regulatory framework for cryptocurrency derivatives trading. The framework requires exchanges to obtain a license and comply with various regulatory requirements, such as anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
Gemini’s strong reputation for security and compliance
Gemini has already obtained a license from MAS to operate as a digital payment token service provider (DPTSP) in Singapore. This license allows Gemini to provide services such as buying and selling cryptocurrencies, as well as custody services for digital assets.
Gemini Futures will be operated by Gemini Trust Company, LLC, which is a regulated trust company that provides custodial services for cryptocurrencies. The company has a strong track record in security and compliance, which should provide investors with confidence in the safety of their assets.
Gemini Futures’ launch plans and offerings
Gemini Futures is expected to launch in the second half of 2021, although an exact date has not been announced. The platform will initially offer Bitcoin futures and options contracts, with plans to expand to other cryptocurrencies in the future. The platform will be accessible to both retail and institutional investors.
Gemini to open a crypto derivative platform market is a sign of the growing maturity of the cryptocurrency industry. As more investors enter the market, there is increasing demand for sophisticated trading products that allow them to manage risk and speculate on price movements. While there are risks associated with crypto derivatives, such as price volatility and regulatory uncertainty, many investors see them as an important tool for diversifying their portfolios and accessing new investment opportunities.
Overall, Gemini’s expansion into the crypto derivatives market is a positive development for the industry. The company’s reputation for security and compliance should help to attract investors to the platform, while its expansion into new markets will help to drive innovation and growth in the industry as a whole.
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