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Gemini to Launch International Derivatives Platform Amid Binance Regulatory Woes

2 mins
Updated by Kyle Baird
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In Brief

  • Gemini will launch perpetual futures for international customers, according to The Information.
  • The launch comes as U.S. authorities are investigating Binance for its derivatives offerings.
  • U.S. authorities are clamping down on exchanges following the collapse of FTX.
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The Gemini exchange is setting itself up to offer crypto derivatives products for international customers. The news comes as Binance is under investigation for its derivatives products in the United States.

According to sources who spoke to The Information, crypto exchange Gemini will soon launch perpetual futures products for international customers. The derivatives market is something that many exchanges have been focusing on since the collapse of FTX, though it does come with its own challenges.

Exchanges Targeting International Markets

Gemini’s platform will enable users to trade perpetual futures contracts, which are considered risky products. It should be noted that in the United States, retail traders are not allowed to trade perpetual futures.

This is why the United States Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance. The agency believes that the exchange violated derivatives laws in the country. Gemini is also facing charges from the United States Securities and Exchange Commission over the unregistered offering and sale of crypto asset securities through Gemini Earn.

Gemini would join other exchanges in launching platforms for international users. Coinbase is reportedly doing the same while also facing scrutiny from regulators.

Crypto Exchanges Looking to Expand Overseas

Coinbase, which was until now largely focused on the U.S. market, is now working on growing internationally. Recent reports state that the exchange plans to set up a new trading platform overseas. It has also asked the Supreme Court for protection from legal disputes.

The increased scrutiny from regulators is a direct result of the FTX collapse, which has shaken up the market both directly and indirectly. Several major exchanges are now on the radar of authorities, and 2023 may be a year of clampdowns.

Gemini Probed Over Bitcoin Futures Contract

Gemini is also facing a probe over a Bitcoin futures contract. The CFTC filed a lawsuit, requesting laptops to be searched for relevant information. Former executives turned over said laptops for a criminal probe, with the Manhattan U.S. Attorney’s Office subpoenaing the laptops. The CFTC then requested the laptops for its own civil case.

These developments will no doubt put some strain on Gemini, though it appears focused on growth regardless. Exchanges may have to rethink their strategies as U.S. authorities clamp down on the crypto market and companies operating in the industry. For the moment, all eyes are on the FTX case, which continues to be the most high-profile incident in the crypto world.

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Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
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