Cryptocurrency Exchange Gemini Eyes Move to United Kingdom
Winklevoss Crypto Push
While Bitcoin and the outlying constellation of cryptocurrencies have experienced a turbulent 2018, the Winklevoss twins, of Facebook fame, are maintaining a positive outlook on the future of cryptocurrencies. Their belief in crypto led them to found the Gemini Trust Company in 2014.
Currently, Gemini ranks among the top 100 crypto exchange companies by volume of trade. Recently, they have made strategic hires to consult on their potential move to the United Kingdom. A the moment, Gemini is planning on filing the appropriate paperwork with the U.K. regulatory watchdog to receive regulatory approval.
The Winklevoss move to the U.K. is not an enormous surprise, given the fact that the majority of the world’s crypto exchanges are based there. Cryptocurrency exchanges have fallen under greater regulatory measures in the last couple years, and the U.K. has tightened its security to meet the demand for consumer protections.
While the United Kingdom has enjoyed a robust cryptocurrency scene, politicians now sound the alarm about possible money-laundering, price manipulation, and large-scale scams in the digital currency sector.
Keeping Crypto Safe
Therefore, lawmakers have called for a minimum regulatory framework to protect customers. This framework would be placed under the supervision of the Financial Conduct Authority which deals with banking regulations in the United Kingdom.
Gemini has stated publicly that it will “buy, sell, and store digital assets in a regulated, secure, and compliant manner.” It seems that compliance with regulations and ensuring consumer protection has become the Winklevoss rallying cry.
While 2017 and early 2018 have been marked with a great deal of market volatility for cryptocurrencies, experts believe that the sell-off has ended for now and the major significant cryptocurrencies are set for a comeback.
Many, like the Winklevoss twins, believe that mass adoption and utilization of cryptocurrencies is just a matter of time, and so they have spent a great deal of time and lobbying power to encourage more people to enter the crypto ecosystem.
The New Stablecoin
This led them to announce the launch of the dollar-backed stablecoin hosted on the Ethereum network. The token, called the Gemini Dollar will be strictly pegged to the US Dollar on a 1-to-1 ratio. This will allow liquidity options for investors who want to send US Dollars back and forth on the Ethereum Blockchain.
One of the major selling points for the Gemini dollar is that it will be directly supervised by the New York Department of Financial Services.
Furthermore, Gemini is partnering with State Street Bank to create a pass-through insurance program implemented by the Federal Deposit Insurance Corporation (FDIC). This means that funds trusted to Gemini will be insured by the FDIC as if stored in a bank.
On top of all of that, the independent auditor BPM Accounting and Consulting will audit Gemini’s bank holding and issue public reports to increase transparency. These measures are designed to increase the safety profile of their cryptocurrency while still maintaining the benefits of cryptocurrencies.
It remains to be seen if cryptocurrencies are bouncing back after a rocky beginning of 2018. However, it is clear that customers are demanding greater protection and that is precisely what the Winklevoss twins are offering. It appears that Gemini will have to convince the U.K. that its money is safe with them.