Gemini Launches Offshore Derivatives Platform

Gemini, the US-based cryptocurrency exchange, has announced the launch of a derivatives platform outside the United States. The new platform, called Gemini Foundation, will provide services to customers based in over 30 countries, including Singapore, Hong Kong, India, Argentina, Bahamas, Bermuda, and the British Virgin Islands, among others. This move is seen as a response to the tightening regulatory environment for crypto firms in the United States.

Gemini Foundation’s first derivatives contract will be a Bitcoin perpetual contract denominated in Gemini Dollar (GUSD). This will be followed by an ETH/GUSD perpetual contract shortly after. Eligible customers will be able to trade both spot and derivatives products and convert US dollars and USD Coin into GUSD on a 1:1 basis. Fees, profits, and losses will also be processed in GUSD. The default leverage on the platform is 20x, with the maximum leverage being 100x.

Perpetual futures trading is not regulated by the Commodity Futures Trading Commission, and exchanges offering crypto futures contracts, like BitMEX, are not available for US customers. Gemini Foundation will not offer services for customers in the United States.

The launch of the offshore derivatives platform comes just a few days after Gemini revealed plans to establish a new engineering hub in India. Gemini’s founders, Tyler and Cameron Winklevoss, have stated that the exchange has “big plans for international growth this year in APAC.” Earlier this month, Gemini filed a pre-registration with the Ontario Securities Commission to become a restricted dealer in Canada.

Gemini has been scrutinized by US authorities, with the New York State Department of Financial Services reportedly investigating the exchange over claims that many users had believed assets in their Earn accounts were protected by the Federal Deposit Insurance Corporation. Gemini’s Earn program halted withdrawals in November after its operating partner, Genesis, cited “unprecedented market turmoil.” In January, the firm filed for Chapter 11 bankruptcy. Reports at the time suggested that up to $900 million in Earn user funds could have been locked. The US Securities and Exchange Commission also charged the exchange with offering unregistered securities through Earn in January.

In light of these controversies, Gemini’s move to launch an offshore derivatives platform seems to be a strategic attempt to expand its business and distance itself from the regulatory scrutiny in the United States. The launch of Gemini Foundation is a significant step for the company, which has been expanding its services and geographical reach in recent years. With the new platform, Gemini is positioning itself as a player in the global derivatives market, targeting customers in countries where regulatory frameworks are more favorable.


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Twitter and Alibaba Enter Global AI Race

In the rapidly evolving world of technology, artificial intelligence (AI) has become a focal point for many companies. Twitter and Alibaba have reportedly joined the global AI race by integrating the technology into their businesses. Twitter plans to use AI to “detect & highlight manipulation of public opinion,” while Alibaba is developing its own chatbot assistant called Tongyi Qianwen.

Meanwhile, the co-founders of cryptocurrency exchange Gemini, Tyler and Cameron Winklevoss, have funded their business with a personal loan of $100 million. The move comes after previous attempts to raise capital from external investors failed. The Winklevoss brothers are funding Gemini amid regulatory scrutiny in the United States, including charges from the Securities and Exchange Commission related to the exchange’s Earn program.

In addition, MetaMask has launched a new feature that allows users to purchase cryptocurrency with fiat currency directly from its Portfolio Dapp. The service is available in over 189 countries and accepts debit and credit cards, PayPal, bank transfers, and instant ACH. MetaMask claims the service follows local regulations and takes the user’s location into account.

The integration of AI into businesses is not without controversy. Twitter CEO Elon Musk, who recently purchased nearly 10,000 graphics processing units (GPUs) for the platform, previously spearheaded a letter calling for the halt of advanced AI development due to societal concerns. However, many companies see the potential benefits of AI and are investing heavily in the technology.

In the cryptocurrency world, the Winklevoss brothers’ loan to Gemini underscores the challenges that exchanges face in a volatile market and amid regulatory scrutiny. However, the loan also highlights the dedication of entrepreneurs to build a successful business in the face of adversity.

Meanwhile, MetaMask’s new feature for purchasing cryptocurrency with fiat currency is a welcome addition for many users who find it challenging to navigate the complex world of cryptocurrency exchanges. The service’s availability in over 189 countries and its acceptance of a wide range of payment methods make it an attractive option for those looking to invest in cryptocurrency.

Finally, Alibaba’s entry into the AI race with its chatbot assistant underscores the company’s commitment to innovation and its vast ecosystem of tech businesses. As the world becomes increasingly reliant on technology, the integration of AI into businesses will likely continue to be a significant trend. However, companies must balance the potential benefits of AI with the societal concerns surrounding the technology.


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Winklevoss Twins Fund Gemini Amid Crypto Downturn

The Winklevoss twins, co-founders of Gemini, have reportedly loaned their own money to support the cryptocurrency exchange during a period of market downturn. This news comes amid increased scrutiny from regulators, with both the U.S. Securities and Exchange Commission and the New York Department of Financial Services investigating Gemini’s activities.

In January, the SEC charged Gemini and Genesis Global Capital with offering unregistered securities through the exchange’s Earn program. Additionally, the New York Department of Financial Services launched an investigation following reports that users claimed assets in their Earn accounts had been given FDIC protection.

Following the announcement of the charges, Tyler Winklevoss accused the SEC of issuing a “manufactured parking ticket,” claiming that Gemini staff had been in talks with the regulator for over a year prior to the enforcement action. This mirrors the complaint of Coinbase, another cryptocurrency exchange whose legal officer claimed that the company met with the SEC more than 30 times over nine months before receiving a Wells notice.

Despite these challenges, the Winklevoss twins remain committed to Gemini and have put their own money into the exchange to ensure its continued success. Gemini has a strong reputation in the cryptocurrency industry, and the twins’ decision to support the exchange during a difficult time is a testament to their dedication to the platform and its users.

Gemini was founded in 2014 and has since become one of the most popular cryptocurrency exchanges in the United States. The exchange is known for its robust security measures and commitment to regulatory compliance, making it a trusted platform for users seeking to buy and sell digital assets.

The Winklevoss twins are also well-known figures in the cryptocurrency world, having made headlines for their involvement in the early days of Bitcoin. The twins famously sued Facebook founder Mark Zuckerberg, claiming he stole their idea for a social networking site. They later used their settlement money to invest in Bitcoin, becoming early adopters of the cryptocurrency and building their fortune in the industry.

In addition to their work at Gemini, the Winklevoss twins are also involved in other cryptocurrency-related ventures, including the digital asset marketplace Nifty Gateway. Their continued involvement in the industry is a positive sign for the future of cryptocurrency, as their support helps to legitimize and strengthen the ecosystem as a whole.

In conclusion, the Winklevoss twins’ decision to fund Gemini with their own money demonstrates their commitment to the exchange and the broader cryptocurrency industry. Despite regulatory challenges and market downturns, the twins remain optimistic about the future of digital assets and are working to build a more robust and secure ecosystem for users.


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Cryptocurrency Firms Deny Exposure to Troubled US Banks

In recent years, the cryptocurrency industry has seen significant growth, with new exchanges, wallets, and other services popping up almost daily. However, the industry has also faced numerous challenges, including regulatory scrutiny, hacking attacks, and volatile market conditions.

The ongoing banking crisis in the United States is the latest challenge facing the industry. Several major U.S. banks, including Silicon Valley Bank (SVB) and Signature Bank, have been dissolved due to financial difficulties, leaving customers and partners uncertain about the safety of their funds.

To address these concerns, major cryptocurrency firms have taken to social media to assure their users that they have no exposure to the troubled banks and that their funds are safe and accessible.

Tether, the operator of the largest stablecoin by market capitalization, with a market value of $73 billion, was one of the first companies to deny exposure to SVB and other troubled U.S. banks. Tether’s chief technology officer, Paolo Ardoino, took to Twitter to announce that the stablecoin company has zero exposure to Signature Bank.

Similarly, Kris Marszalek, CEO of major cryptocurrency exchange, provided similar statements on the company being unaffected by the ongoing issues in U.S. banking.

Other major exchanges, including Gemini and BitMEX, have also denied any exposure to the dissolved U.S. banks.

Despite having a partnership with Signature, Winklevoss brothers-founded Gemini exchange has zero customer funds and zero Gemini dollar (GUSD) funds held at the bank, the firm announced on March 13.

BitMEX exchange also took to Twitter on March 13 to announce that the company had “no direct exposure” to Silvergate, SVB, or Signature, and that all user funds continue to be safe and accessible 24/7/365.

Exchanges like Binance and Kraken have partly denied exposure to the dissolved banks, with Binance CEO Changpeng Zhao stating that Binance does not have assets at Silvergate, and former Kraken CEO Jesse Powell also denying exposure to SVB.

Bitcoin mining firm Argo Blockchain issued a statement on March 13, declaring that the company has no direct or indirect exposure to SVB and Silvergate Bank. However, the company said that one of Argo’s subsidiaries holds a “portion of its operating funds in cash deposits” at Signature, which the company stated were secure and not at risk.

A number of other firms, including Animoca Brands, Abra, and Alchemy Pay, have partly denied exposure to the troubled U.S. banks, stating that they had no assets at SBV and Silvergate.

Some companies, like crypto custodian BitGo, declared that it holds no assets at SVB while being “not impacted” by issues at Silvergate, USD Coin, and Signature Bank.

In conclusion, the ongoing banking crisis in the United States has raised concerns among customers and partners of dissolved U.S. banks. However, major cryptocurrency firms have taken proactive measures to address these concerns and assure their users that their funds are safe and accessible despite the ongoing issues in the U.S. banking system. The response from the industry demonstrates its resilience and commitment to providing reliable and secure financial services to its users.


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Gemini co-founder: Crypto’s next bull run will start in Asia

Cameron Winklevoss, an American investor and co-founder of the cryptocurrency exchange Gemini, predicts that Asia will be the beginning of the next bull run for cryptocurrencies.

His remarks came at a time when authorities in the United States, particularly the Securities and Exchange Commission, were ramping up their enforcement actions and threatening to clamp down even more.

In a tweet he sent on February 19, Winklevoss said, “My working thesis at the moment is that the next bull run is going to start in the East.”

“It will serve as a sobering reminder that crypto is a global asset class, and that the West, and more specifically the United States, has always had only only had two options: embrace it, or be left behind,”

“There is no way to stop it. That is a fact,” he went on to say.

Chainalysis found that the cryptocurrency market in Central and Southern Asia and Oceania (CSAO) was the third biggest market in its index for 2022. Between July 2021 and June 2022, residents of these regions were compensated with a total value of $932 billion worth of bitcoin.

CSAO was also home to seven of the top 20 nations in 2022’s index, including Vietnam (which ranked first), the Philippines (which ranked second), India (which ranked fourth), Pakistan (which ranked sixth), Thailand (which ranked eighth), Nepal (which ranked sixteen), and Indonesia (20).

In a thread on his Twitter account, Winklevoss stated that governments that fail to offer clear rules and sincere guidance on cryptocurrencies will be “left in the dust” and will miss out on “the greatest period of growth since the rise of the commercial Internet.” He also stated that these governments will also miss out on the opportunity to shape and be a foundational part of the future financial infrastructure of this world (and beyond).

Winklevoss is not the first person to argue that the United States’ attitude to cryptocurrencies would drive away the business, nor will he be the last person to claim that Asia may kick off the next cryptocurrency boom cycle.

According to Brian Armstrong, CEO and co-founder of Coinbase, the strict measures of U.S. authorities, notably the SEC, might further push cryptocurrency firms abroad.

In the meantime, a free market analyst on Twitter known as GCR has predicted that “China, (and Asia in general) will fuel the next run” in a post that they made on January 8 to their 147,300 followers. GCR’s tweet read: “China, (and Asia in general) will fuel the next run.”

“It will take quite some time to melt the cynicism that Westerners have toward this space, but the East is ascending and yearning to flex their muscles.”

In October of last year, Arthur Hayes, a former CEO of the crypto derivatives giant BitMEX, made a prediction that the next bull run will begin when China moves back into the market. He went one step further and said that Hong Kong has a vital part to play in this process. His prediction was that the next bull run will begin when China moves back into the market.

Hayes argued that Hong Kong could become the proving ground for Beijing to experiment with cryptocurrency markets and act as a hub for Chinese capital to find its way into global cryptocurrency markets. Hong Kong is already acting as a testing ground for Beijing to experiment with traditional markets.

During that time, he made the statement that “China has not abandoned crypto; it has merely remained inactive.”

At the beginning of this year, Paul Chan, Hong Kong’s financial secretary, gave a speech on January 9 at the POW’ER Hong Kong Web3 Innovators Summit. In his speech, he revealed that Hong Kong’s lawmakers had passed legislation in December to set up a licensing system for virtual asset service providers.

As a direct result of the modifications to the legislation, a narrative known as the “Chinese Coins Pump” has been gaining traction. This narrative has been gaining traction as speculation grows over whether the regulatory easements in Hong Kong will lead to a massive surge for utility tokens of Asian-focused exchanges.


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Nifty Gateway Founders Resign

Duncan Cock Foster and Griffin Cock Foster, who were both co-founders of the nonfungible token (NFT) auction platform Nifty Gateway, announced their resignations in a thread that was posted on Twitter on January 25. Their departure is effective immediately.

In an attempt to justify their departure, Duncan said that “Griffin and I are entrepreneurs at heart, and we want to create another firm.” “When @Gemini purchased NG in 2019, Griffin and I agreed that if everything went well and we were happy in our new roles, we would each remain for a total of four years before launching a new venture.

The fact that we ended up staying the maximum length of time that we had anticipated being feasible is evidence of how enjoyable this trip was.”

This decision was made in the midst of a legal dispute between Gemini, the parent company of Nifty Gateway, and Genesis Global, a cryptocurrency lender that has since gone bankrupt.

After Genesis Global put a stop to withdrawals in November 2020 due to “extraordinary market circumstances,” Gemini claims that Genesis Global owes its members $900 million as part of the Gemini Earn programme that Gemini offers. Gemini is suing Genesis Global.

I have some news to share: after nearly four years, my colleague @gcockfoster and I have decided to leave @gemini and transfer the torch to @niftygateway.

This trip has been an amazing adventure, but Griffin and I are entrepreneurs at heart, and we want to launch another successful business together.

accompanied by some ideas down below:

— duncancockfoster.eth | Related Links The Nifty Gateway (@dccockfoster) Tweet of the Day for January 25, 2023 Nifty Gateway was established in 2018, and Gemini purchased it the following year.

Duncan said that in spite of the challenging financial situations at the parent firm, they have been “preparing for this transition for months” and that Nifty Gateway “is in excellent hands.”

In his writing, “Cameron [Winklevoss] and his brother Tyler Winklevoss are visionaries who saw the potential in NFTs a significant amount of time before nearly anybody else.

Nifty Gateway will continue to flourish because of the leadership provided by them.

As part of the shift, Eddie Ma will take over as “technical leader” for Nifty Gateway, while Tara Harris will move into the role of “leader” for non-tech operations. “It is common knowledge that transitions may bring about an increased sense of unpredictability about the future.

To that aim, in the weeks ahead, we will provide the general public with a road map and a strategy for the development of Nifty’s future.

In order to guarantee the smooth continuation of the mission after our departure, we want to maintain a connection to it in the capacity of advisors.”


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Bybit CEO clarifies company’s exposure to Genesis

On January 20, 2019, renowned cryptocurrency lender Genesis Global Trading became the latest firm to declare bankruptcy in the aftermath of the collapse of FTX. Genesis Global Trading filed for protection under Chapter 11 in New York, becoming the fourth company to do so.

On the other hand, the attention of the cryptocurrency community has recently switched onto other companies that were exposed to the loan company.

According to one source, a total of nine different cryptocurrency companies, including Gemini, Bybit, VanEck, Decentraland, and others, have exposure to the Genesis blockchain.

Ben Zhou, the CEO of Bybit, was quick to reply to the claims and emphasised that his company did indeed have a $150 million exposure to the defunct cryptocurrency lender through its investment arm Mirana.

Zhou made the observation that Mirana only handled a part of Bybit’s assets, and that the estimated $151 million exposure included around $120 million of collateralized holdings, all of which Mirana had previously liquidated.

Additionally, he ensured that customer cash are kept separate and that the various products offered by Bybit do not utilise Mirana.

Although many people were grateful for the swift answer provided by the co-founder, many others still had further concerns about the clarification, particularly concerning the various items offered by the firm.

One of the users sought complete transparency about the earn items and the yield generation process.

Another user raised concerns over their connection with Mirana and inquired as to whether or not they follow a strategy comparable to that of FTX/Alameda.

Others were perplexed by the timing of the revelation, considering the many problems that have been associated with the book of Genesis.

Some of Genesis’s largest lenders, such as Gemini, have been quite vocal in their demands for action to be taken against the Digital Currency Group, which is Genesis’s parent business.

A user commented as follows: “If you tweet “full transparency” only after you have been discovered with your trousers down, then your claim is immediately invalidated.

ByBit would have disclosed this information some months ago if it were considered “full transparency.”

“Many other people wanted evidence that transactions had taken place between Bybit and Marina as a kind of reassurance while also reminding Zhou that previous FTX executives had made comments that were quite similar.

I appreciate the promptness with which you have responded to this.

Please be aware that despite this, everyone is still on edge.

People will have a more positive reaction and feel better about themselves if you can present more proof or evidence. The CryptoData Twitter Account (@TheCryptoData) January 20, 2023


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Reactions to Genesis Global Trading’s Bankruptcy

Members of the cryptocurrency community expressed their opinions on the situation on social media shortly after the crypto lender Genesis Global Trading filed for protection under Chapter 11 of the United States Bankruptcy Code in the state of New York. Members of the crypto community shared their opinions on the most recent event in what appears to be an endless string of bankruptcies in the cryptocurrency space. These opinions ranged from the conviction that no one will be held accountable to the characterization of the entire concept of crypto lending as “stupid.”

There are others who feel that bankruptcy attorneys will emerge victorious in each of these competitions.

A member of this group who identified themselves as a creditor of Voyager said that consumer cash would be used to pay the legal team one million dollars, and in the end, “no one will be held responsible.”

Genesis has recently submitted its application for chapter 11.

Bankruptcy attorneys making profit on crypto bankruptcies.

— Coin Bureau (@coinbureau) January 20, 2023 Cameron Winklevoss, co-founder of Gemini, said that the bankruptcy is “excellent news” and a move toward Gemini subscribers receiving their money back. He referred to it as a “step.”

However, a member of the community responded to Winklevoss’ tweet by stating once again that the users are the only people who have been affected.

According to the user, Gemini is “also as culpable” for not doing enough research on the manner in which Genesis does business before to forming a partnership with the company. During this time, a crypto analyst drew up a diagram to show how crypto enterprises could have been linked during the current spate of bankruptcies that the sector has been experiencing.

The expert believes that the Genesis bankruptcy will shed light on the leverage cycle in the cryptocurrency market.

Some members of the community, who seem to be sick and weary of the negativity that surrounds the area, have stated their lack of faith in cryptocurrency firms.

A commenter on Twitter said that people couldn’t trust firms located in the United States anymore since all of the companies were interconnected.

Billy Markus, the developer of Dogecoin (DOGE), also weighed in on the controversy, labelling the whole notion of cryptocurrency lending as “dumb” and referring to everyone participating in the practise as a “idiot.”


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Microsoft Shares Strategies for Integrating Crypto into Regular Payment Transactions

Microsoft, a global pioneer in payment technology and innovation, has announced plans to develop methods of integrating crypto, Non-Fungible Tokens (NFT), and metaverse into the world’s financial sector to make daily payments seamless.


Raj Dhamodharan the Executive Vice President of Digital Asset & Blockchain Products and Partnerships at Microsoft outlined 5 different methods of making this possible.


The first method Raj stated was the use of crypto cards. Raj noted that Microsoft has partnered with Gemini in the United States to offer a credit card that uses crypto for making rewards payments. A recent announcement was made in Europe as Microsoft creates the world’s first debit card to be personalized into a customer’s NFT avatar.


The second method according to Raj is the provision of Services through crypto. Crypto users and companies can now get support in terms of cybersecurity, advisory, and banking services from Microsoft.


Thirdly, companies can form a partnership with giant-crypto companies such as  Paxos and Uphold to convert crypto into fiat so as to simplify payment transactions. The fourth key involves integrating some cryptocurrencies approved by Microsoft into their network so as to expand the choice of payments for users.


Lastly, Raj mentioned the relevance of partnering with metaverse and NFTs. According to him, “Customers of Coinbase can already use Mastercard to pay for NFTs, and in June we announced intentions to extend these options to eight additional NFT marketplaces and infrastructure providers.”


Making Payments Easy with Crypto


In 2020, the world’s top cryptocurrency exchange Binance announced the release of “Binance Card,” a new product that promises to offer crypto payment services anywhere in the world. The “Binance Card” offers many more features than a typical payment card. It functions similarly to a typical debit card supplied by your bank.

Also, Uber CEO Dara Khosrowshahi stated that the tech business is open to embracing Bitcoin as a form of payment for its transportation and Uber Eat delivery services in an interview with CNBC’s Squawk Box.

Image source: Shutterstock


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Swyftx Lays Off One Out of Five Staff on Account of Crypto Winter

Australian cryptocurrency exchange known as Swyftx with its location in the Brisbane region has announced that it is cutting down on its staff strength by 21% which means that it would be letting go of up to 74 of its staff. 


According to the co-CEOs Alex Harper and Ryan Parsons who announced to the staff, the employees who will be made redundant are not affected because of their lack of talent or commitment to the company. Rather, it was a result of the uncertain business conditions in which the exchange is thriving.

Affected Swyftx Employees Speaks about Redundancy

Additionally, the high volatility of the crypto market, as well as the possibility of a global recession occurring were considered before the decision was made. Many of the affected workers took to their personal LinkedIn pages to talk about their exit. 

Amongst them was a sales manager who mentioned that she had celebrated her first anniversary with Swyftx just a few days ago. She only just found out that she was out of her job while having her honeymoon in Hawaii. 

The pained sales manager talked about how it had been an incredible time at Swyftx. In particular, she had started the year with so many plans, which included training, upskilling, mentorship, and many others. Trying to stay positive, she promised to cheer the remaining members of the Swyftx team from the sideline. 

Significantly, this news comes a few weeks after Swyftx announced a merger valued at $1.5 billion with Sydney-based online investment platform, Superhero. 

The cutting of staff by crypto-based trading platforms is not a new trend. While Coinbase Global Inc pioneered the move, others like Gemini and Bybit amongst others have also shed off their staff to cut costs. While many exchanges have trailed this path, others like Binance and Kraken have expressed commitment to continually add to their workforce.

Image source: Shutterstock


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