Gemini Introduces a Platform for Crypto Derivatives Outside of the US Facing Regulatory Pressure

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Last Updated on April 22, 2023 by Bitfinsider

The decision was made after American watchdogs, including the Securities and Exchange Commission (SEC), who have been focusing on exchanges like Binance, Kraken, and Coinbase, increased their inspection.

The first derivatives contract offered by the Gemini Foundation will be a perpetual contract for Bitcoin (BTC) valued in Gemini dollars (GUSD), with an ETH/GUSD perpetual contract following soon after. The website will let eligible users trade spot and derivative items in 30 nations, including Singapore, Hong Kong, Brazil, and South Korea. Customers can use their crypto assets to control risk, produce returns, get long or short exposure to the market, and acquire directional exposure.

The Gemini Foundation seeks to offer a safe, dependable, and affordable platform for trading derivatives. With its sophisticated trading tools and user-friendly interface, the location will serve both seasoned traders and those who are new to the bitcoin industry. The maximum permitted leverage on the platform is 100x, whereas the default is 20x.

GUSD, the currency used for all funding donations, will also serve as the foundation for the platform’s pricing structure. Gemini Foundation has stated ambitions to expand its derivatives offering in the upcoming months, despite the exchange still being in its early stages.

Gemini made the choice to create a crypto derivatives platform outside of the US at a time when US regulators are tightening their control over the sector. Concerns over the risks associated with cryptocurrencies are growing, and the SEC has started looking into the activities of numerous exchanges. Gemini may create a platform that is not available in the United States in order to avoid any legal issues.

Gemini is one of the most well-known exchanges in the nation, making the launch of a platform outside of the US significant for the company. Although the feasibility of the platform has not yet been shown, it is clear that businesses are seeking for ways to adapt as the bitcoin industry changes quickly. Gemini made the decision to construct a platform outside of the US in an effort to capitalize on this innovation and grow internationally.

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