Cameron and
Tyler Winklevoss, billionaire twins known for alleging that Mark Zuckerberg
stole their idea for the creation of Facebook, are planning to move their
cryptocurrency business from the United States to another location.
Citing
‘hostile’ conditions in the United States, they are considering transferring
the operations of the cryptocurrency exchange Gemini to the City of London, one
of the most important financial capitals of the world.
As The
Telegraph reported this week, the twins met with representatives of the UK’s
Financial Conduct Authority (FCA) and the local central bank to discuss the
potential of launching their operations in the UK.
Gemini has
no intention of leaving the United States entirely. Based on the statements
from the Winklevoss twins, it is clear that they intend to continue fighting
for improved regulatory conditions in their home country. However, for the sake
of their business, they are considering relocating the core of their operations
to the United Kingdom, which, in their view, has a decidedly better and clearer
approach to digital asset regulation.
“There
are so many headwinds right now in the US it’s hard to get anything done
there,” Cameron Winklevoss, one of the Gemini Founders, said. “And so
in order to keep building our business and invest in hiring, we have to look
elsewhere.”
The United States Fight
against Crypto
The
Winklevoss twins aren’t the only crypto business owners in the country lamenting
deteriorating regulatory conditions. After the collapse of the cryptocurrency
exchange FTX, owned by Sam Bankman-Fried, last year, US regulators began scrutinizing
companies’ operations related to digital assets more closely.
In late
March, Beaxy Exchange ceased its operations after receiving a lawsuit from the
Securities and Exchange Commission (SEC). Earlier, the Commodity Futures
Trading Commission (CFTC ) sued Binance for running an “illegal derivatives
exchange.” The platform disagrees with the allegations from the regulator
and describes them as an “incomplete recitation of facts.“
Almost four
months ago, Kraken, another cryptocurrency exchange, suspended some of its
services in the US after paying a $30 million settlement in relation to
accusations from the SEC involving offering “staking-as-a-service” to
its US clients.
Gemini Cuts Workforce and Enters New Countries
Regulatory
issues in the US are certainly not helping Gemini, which, struggling with the
aftermath of the cryptocurrency winter, has cut its workforce three times over
several months, most recently in January 2023.
In April,
Gemini entered the Canadian market, filing for pre-registration with the
Ontario Securities Commission (OSC), a state regulator in the country. Once
approved, Gemini will become a restricted dealer with the OSC.
A month
ago, the Winklevoss brothers announced their intention to launch a non-US
crypto derivatives platform called Gemini Foundation in response to regulatory
pressure in the United States. The first products that the Gemini Foundation offers
will be based on Gemini dollars (GUSD), the exchange’s proprietary stablecoin,
and will be used for settling Bitcoin (BTC) perpetual contracts.
Cameron and
Tyler Winklevoss, billionaire twins known for alleging that Mark Zuckerberg
stole their idea for the creation of Facebook, are planning to move their
cryptocurrency business from the United States to another location.
Citing
‘hostile’ conditions in the United States, they are considering transferring
the operations of the cryptocurrency exchange Gemini to the City of London, one
of the most important financial capitals of the world.
As The
Telegraph reported this week, the twins met with representatives of the UK’s
Financial Conduct Authority (FCA) and the local central bank to discuss the
potential of launching their operations in the UK.
Gemini has
no intention of leaving the United States entirely. Based on the statements
from the Winklevoss twins, it is clear that they intend to continue fighting
for improved regulatory conditions in their home country. However, for the sake
of their business, they are considering relocating the core of their operations
to the United Kingdom, which, in their view, has a decidedly better and clearer
approach to digital asset regulation.
“There
are so many headwinds right now in the US it’s hard to get anything done
there,” Cameron Winklevoss, one of the Gemini Founders, said. “And so
in order to keep building our business and invest in hiring, we have to look
elsewhere.”
The United States Fight
against Crypto
The
Winklevoss twins aren’t the only crypto business owners in the country lamenting
deteriorating regulatory conditions. After the collapse of the cryptocurrency
exchange FTX, owned by Sam Bankman-Fried, last year, US regulators began scrutinizing
companies’ operations related to digital assets more closely.
In late
March, Beaxy Exchange ceased its operations after receiving a lawsuit from the
Securities and Exchange Commission (SEC). Earlier, the Commodity Futures
Trading Commission (CFTC ) sued Binance for running an “illegal derivatives
exchange.” The platform disagrees with the allegations from the regulator
and describes them as an “incomplete recitation of facts.“
Almost four
months ago, Kraken, another cryptocurrency exchange, suspended some of its
services in the US after paying a $30 million settlement in relation to
accusations from the SEC involving offering “staking-as-a-service” to
its US clients.
Gemini Cuts Workforce and Enters New Countries
Regulatory
issues in the US are certainly not helping Gemini, which, struggling with the
aftermath of the cryptocurrency winter, has cut its workforce three times over
several months, most recently in January 2023.
In April,
Gemini entered the Canadian market, filing for pre-registration with the
Ontario Securities Commission (OSC), a state regulator in the country. Once
approved, Gemini will become a restricted dealer with the OSC.
A month
ago, the Winklevoss brothers announced their intention to launch a non-US
crypto derivatives platform called Gemini Foundation in response to regulatory
pressure in the United States. The first products that the Gemini Foundation offers
will be based on Gemini dollars (GUSD), the exchange’s proprietary stablecoin,
and will be used for settling Bitcoin (BTC) perpetual contracts.