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This Crypto Exchange acquired regulatory approval in Italy and Greece

The New York-based cryptocurrency exchange Gemini acquired the most recent regulatory nods days before severe problems with its flagship product, Gemini Earn, surfaced.

This Crypto Exchange acquired regulatory approval in Italy and Greece
Photo by PiggyBank / Unsplash
  • On November 30, Gemini continued to expand in Europe as a virtual currency operator and announced regulatory approvals in Italy and Greece.
  • The Central Bank of Ireland (CBI), which also gave it EMI authorization,  claimed that Gemini was the first to register as a virtual asset service provider (VASP).
  • Gemini today operates in 65 countries.
  • Despite critical problems with its lending instrument, Gemini Earn ceased accepting withdrawals after being affiliated with Genesis Global Capital, where its $700 million remains locked up.

Gemini, a cryptocurrency exchange run by the Winklevoss brothers, has announced additional regulatory permits in Italy and Greece as it grows in Europe (1). Gemini said on November 30 that it had registered as a virtual currency operator with the Organismo Agenti E Mediatori (OAM), Italy's payments services regulator.

The cryptocurrency exchange has also been registered with Greece's Hellenic Capital Markets Commission as a provider of custody wallets and virtual currency exchange (HCMC). Official records show that the OAM registration was issued on November 3 and that Gemini received permission from the HCMC on November 7 (2).

The exchange is now legally permitted to offer cryptocurrency services to its customers in Italy and Greece thanks to the new registrations and Gemini's authorization as an electronic money institution from the Central Bank of Ireland. The licenses also prove Gemini's adherence to all applicable Italian and Greek anti-money laundering and counter-terrorist financing laws.

Gemini claimed it was the first to be registered as a virtual asset service provider (VASP) under The Central Bank of Ireland (CBI). In February of this year, the CBI granted it an electronic money institution (EMI) authorization.

Gemini has been able to issue electronic currency, offer electronic payment services, and manage electronic payments for third parties thanks to the e-money license it sought in early 2020 and was granted in March 2022 (3).

Gemini operates in around 65 nations as of November 2022, including some brand-new ones like Croatia, Cyprus, Czech Republic, Denmark, Hungary, Ireland, Latvia, Liechtenstein, Portugal, Romania, Slovenia, Sweden, and others, according to the company.

This Crypto Exchange acquired regulatory approval in Italy and Greece
Photo by Christian Lue / Unsplash

The most recent registrations occurred before Gemini experienced significant problems with its lending tool, Gemini Earn, which enables investors to earn 8% by lending their cryptocurrency.

Due to its affiliation with Genesis Global Capital, the product stopped allowing withdrawals. Gemini is said to have $700 million in customer funds locked up (4). Gemini's status states that on November 16, just a few days after the initial rumors about FTX's liquidity problems arose, Gemini Earn began to experience troubles with deposits.

The product is still inaccessible as of the time of writing, but all other Gemini services, including the exchange trading engine, Gemini Credit Card, and others, remain available.

Gemini Earn was established in 2021 and began offering services in the United States through a collaboration with Genesis Global Capital, which stopped withdrawals on November 16 due to the current FTX contagion.

In a tweet from November 21, Gemini stated, "We continue to work with Genesis Global Capital, the lending partner of Earn, and its parent firm, Digital Currency Group, to find a way for Earn users to redeem their cash."

On November 29, Gemini also announced the Gemini Trust Center on Twitter, assuring its clients that their accounts and assets are separate from Gemini's holdings. Gemini is a custodian and full-reserve exchange.

According to the corporation, all customer money stored by Gemini is held in a 1:1 ratio and is always accessible for withdrawal. As was previously mentioned, Gemini was one of the exchanges affected by the present bear market, with employee reductions of up to 20%.

The United States Senate Finance Committee has also targeted the exchange as part of its information request regarding customer protection measures in the wake of the FTX collapse.