Gemini, the New York-based crypto exchange, has decided to halt operations in the Netherlands due to regulatory constraints imposed by the De Nederlandsche Bank (DNB).
In a letter addressed to its Dutch users on September 26, Gemini urged them to withdraw their assets or transfer them to another wallet before the suspension comes into effect on November 17.
The exchange attributed its exit to its inability to comply with the regulatory requirements set by the DNB for crypto exchanges. The company intends to re-enter the Dutch market once it aligns its business practices with the newly established regulations, specifically the Markets in Crypto-Assets regulations (MiCA).
The exchange recommended transferring funds to the local crypto exchange Bitvavo, which is registered with the DNB, to facilitate a smooth transition for its users. Bitvavo, established in 2018 and headquartered in Amsterdam, is a member of the Dutch Association of Bitcoin Companies.
This move mirrors a similar exit by Binance, a global competitor of Gemini, from the Dutch market earlier in the summer of 2023. After facing regulatory hurdles, Binance ceased operations in the Netherlands and is speculated to consider a return upon compliance with MiCA.
Currently, 37 virtual asset providers, including eToro, Coinbase, Crypto.com, and BitPay, are registered with the DNB, adhering to the evolving regulatory landscape in the crypto space.
Gemini’s Bold Financial Move
In related news, Gemini made headlines recently when it withdrew hundreds of millions of dollars from Genesis Global Holdco LLC several months before Genesis froze deposits and filed for bankruptcy.
This move was part of the “Earn program,” which allowed Gemini users to generate yields on their crypto tokens by lending them through Genesis.
The exchange clarified that the withdrawn funds belonged to Earn program users, not the exchange or its co-founders, the Winklevoss twins. The exchange stated that this withdrawal resulted in Earn users having reduced exposure to Genesis when it halted redemptions in November 2022.
The withdrawal came amid ongoing legal battles between Gemini, Genesis, and its parent company, Digital Currency Group (DCG). Gemini had sought $1.1 billion on behalf of Earn users, and the parties engaged in lengthy settlement negotiations, including a lawsuit by Gemini against DCG for fraud.
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