The approval allows Gemini to extend its services to retail and institutional clients in the country, and the company plans to launch its platform for French users in the coming weeks after completing final preparations.
In essence, Gemini customers in France will gain access to trade over 70 cryptocurrencies through the firm's website and mobile app, along with the more advanced ActiveTrader platform. Institutional clients, on the other hand, will have access to Gemini eOTC, the company's electronic over-the-counter trading solution.
According to cnbc.com, the move into the French market aligns with the broader trend of major US crypto companies turning to the European Union for expansion. This shift is attributed, in part, to a regulatory crackdown on the crypto industry by US authorities, including the Securities and Exchange Commission (SEC). Gemini, along with crypto lender Genesis, faced SEC charges in 2023 related to the alleged sale of unregistered securities in connection with Gemini Earn, a high-yield savings product. However, it's worth noting that Gemini has decided to dispute the SEC's claims.
Gemini's decision to establish its European headquarters in Ireland in May 2023 was also a part of its ongoing expansion in the region. Coinbase, another US-based cryptocurrency exchange, selected Ireland as its primary regulatory hub in the EU and obtained a single MiCA license from Ireland's central bank.
Cnbc further reports that the regulatory landscape in Europe, characterised by both support and a need for clarity, was observed by Gemini during the founders' EU visit in 2023. At the time, reference was made to the EU Markets in Crypto-Assets Regulation (MiCA), which allows crypto companies to hold a license in one country and use it as a 'passport' to any EU nation. MiCA is considered a significant development in global crypto-specific legislation.
While the US has taken steps to embrace certain aspects of cryptocurrency trade, there is still no federal-level crypto regulation at the time of writing. Recent developments include the SEC's approval of the first-ever spot bitcoin ETFs, viewed as a milestone bringing crypto closer to traditional finance. However, this approval followed years of SEC objections, citing concerns about price manipulation in the unregulated crypto markets.
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