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Why Gemini’s Entrance Into The UK Crypto Market Could Be Difficult

U.S. cryptocurrency platform Gemini is reportedly making a move into the U.K. cryptocurrency market. According to reports from FT, the exchange has employed advisors to take a look at the potentials of the U.K. crypto market.

“[We] continue to explore potential jurisdictions around the globe to provide a best-in-class digital asset exchange and custodian which will enable growth and infrastructure to the entire digital asset community,” a Gemini official said.

Interestingly,  Gemini has always made it clear that they prefer a “security-first” approach in all of their digital exchange dealings, so the exchange would not want to rush into the U.K. crypto market. However, if Gemini eventually decides to, then a roadblock could be the regulation of crypto firms in the U.K.

U.K Crypto Exchanges Regulation Not Clear Like In the U.S

The strict regulation and uncertainty surrounding the UK cryptocurrency space is the biggest challenge to Gemini’s intentions to make an entry into the region.

To overcome this challenge, sources claim that Gemini is close to filing an application with UK market watchdog, Financial Conduct Authority.

It is left to see what happens after the application has been filed, as the UK Members of Parliament (MPs) last week urged the Financial Conduct Authority to raise its game and regulate the “Wild West” crypto-assets to make the country a global center for crypto activities.

“If the government decides that crypto-asset growth should be encouraged, appropriate and proportionate regulation could see the UK become a global center for this activity,” were the exact words of the committee chairman, Nicky Morgan.

If Gemini successfully files its application, it would be hoping to meet better fortunes. Recently, the firm has received rejections from the U.S. SEC for its application to launch a Bitcoin Exchange Traded Fund (ETF).

On the bright side, Gemini is known to be operating in full compliance to the cryptocurrency regulations in the U.S having received an approval to operate under New York’s BitLicense framework.

The New York-based company, Gemini Trust was founded by twins Cameron and Tyler Winklevoss in 2014 before becoming the first licensed Ether exchange in 2016 and Zcash in 2018.

 

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