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Gemini Kicks Off Derivatives Platform in PH, 29 Other Countries

Gemini Launches Cryptocurrency Derivatives Platform in PH and 29 Other Countries

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UPDATE: PH SEC FLAGS GEMINI EXCHANGE FOR OPENLY OFFERING ITS DERIVATIVES PRODUCTS IN THE PHILIPPINES

Editing by Nathaniel Cajuday

  • Gemini, a cryptocurrency firm, is launching its non-U.S. derivatives platform, Gemini Foundation, in the Philippines and 29 other countries and territories.
  • Gemini’s decision to launch the platform offshore was influenced by the regulatory complexities in the United States, where they were sued by both the CFTC and SEC for alleged securities violations. 
  • In the Philippines, entities must obtain a license from the SEC for derivatives and a VASP license to deal with crypto-to-fiat transactions.

Gemini, the crypto company owned by ‌billionaire Winklevoss twins Tyler and Cameron, is set to launch its non-U.S. derivatives platform, Gemini Foundation, to the Philippines and 29 other countries and territories. 

Aside from the Philippines, it will also be available in other countries, such as:

  • Singapore
  • Hong Kong
  • India
  • Argentina
  • Bahamas
  • Bermuda
  • British Virgin Islands
  • Bhutan
  • Brazil
  • Cayman Islands
  • Chile
  • Egypt
  • El Salvador
  • Guernsey
  • Israel
  • Jersey
  • New Zealand
  • Nigeria
  • Panama
  • Peru
  • Saint Lucia
  • Saint Vincent & Grenadine
  • South Africa
  • South Korea
  • Switzerland
  • Thailand
  • Turkey
  • Uruguay
  • Vietnam

Gemini Foundation

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The platform was first introduced on April 21 and officially went live on May 1 as an offshore crypto derivatives platform. 

It is offering eligible customers the opportunity to use their cryptocurrency assets to gain long or short exposure to the cryptocurrency market by enabling them to manage their risk, earn profits, and gain a sense of direction with their investments. 

Customers who meet the eligibility criteria, as per Gemini, will have access to both spot and derivative trading products and will be able to execute their trading strategies in a secure and reliable environment provided by the platform.

In addition to being able to trade BTC perpetual contracts with up to 100x leverage denominated in Gemini dollars (GUSD), the firm teased that users may be able to utilize ETH/GUSD perpetual contracts in the coming weeks.

Further, the platform also expressed its desire to continue providing its users with an exceptional trading experience, noting that in the coming weeks and months, the derivatives offering will be expanded to include more perpetual contracts, dated futures, and options.

However, the firm noted that customers residing in the United States of America, the United Kingdom, or the European Union are not eligible to use the services offered by the Gemini Foundation.

Photo for the Article - Gemini Kicks Off Derivatives Platform in PH, 29 Other Countries

Gemini vs. US Regulation

The Winklevoss twins stated during their exclusive interview with Fortune that the regulatory complexities in the United States were a factor that influenced their choice to introduce the Gemini Foundation in Singapore. 

Initially, Gemini eyed launching the derivatives exchange platform in their home country by applying to the Commodity Futures Trading Commission (CFTC) in 2020. However, they abandoned the plan in early 2023 when it became apparent that it would not materialize anytime soon. 

In 2022, Gemini was sued by the CFTC for allegedly deceiving regulators by providing false information about the exchange and futures contracts during meetings with the regulator as part of an attempt to secure approval for Bitcoin futures in 2017. 

Last January, the US Securities and Exchange Commission (SEC) also charged Gemini with allegedly selling unregistered securities through its Gemini Earn lending platform. 

According to Tyler Winklevoss, the U.S. regulatory landscape is a “total logjam.” Nevertheless, he stated that if expanding business and introducing crypto to individuals in the United States is not presently feasible, “that’s not going to stop us from bringing it globally.”

“We’re not leaning out of the U.S.; we’re just leaning into being a global company. If lawmakers could come together and build a clear framework for crypto companies, it would be a huge boon for the U.S. and a huge boon for consumers, innovators, and investors,” he concluded.

Read more: Coinbase Seeks Help from Court to Oblige SEC to Respond Over Rulemaking Petition

Can Gemini Offer Derivatives in PH?

Derivatives, by definition, are financial instruments that derive their value from the underlying assets such as stocks, bonds, commodities, currencies, or interest rates; their value is based on the price movements of their underlying asset, which means that their value can fluctuate based on changes in the price of the asset. In Gemini’s case, the underlying assets are cryptocurrencies.

In the Philippines, any company that wishes to offer derivatives is generally required to obtain a license from the SEC. It is prescribed under the Securities Regulation Code (SRC) of 2000, which states that any entity that desires to offer or sell securities, including derivatives, in the country must register with the Commission and comply with all applicable regulations and licensing requirements. 

In addition, regarding Gemini offering cryptocurrencies as an underlying asset for derivatives trading, it can be noted that entities must have a Bangko Sentral ng Pilipinas (BSP) license to be able to have a service converting crypto to fiat and vice versa. 

At the very least, entities must have a Virtual Asset Service Provider (VASP) license to operate a business that can deal with crypto-to-fiat and fiat-to-crypto transactions. 

This article is published on BitPinas: Gemini Kicks Off Derivatives Platform in PH, 29 Other Countries

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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