Crypto exchange Gemini has announced the expansion of its staking services to users in Switzerland and Turkey. The development comes at a time when United States-based exchanges face regulatory hurdles with the Securities and Exchange Commission (SEC) regarding similar services.
The launch was announced through the company’s Tweet, which noted that customers could now stake Ethereum (ETH) and Polygon (MATIC) in the two countries. The move aims to provide investors with new opportunities to earn rewards and enhance network functionality.
Gemini’s move follows a recent trend of U.S-based cryptocurrency exchanges exploring opportunities in regions with more relaxed regulatory environments. The trend was sparked by recent actions taken by the SEC against cryptocurrency exchanges providing staking services in the U.S.
Earlier this year, the SEC charged Kraken for failing to register its staking-as-a-service program. Coinbase, another industry giant, faced similar charges for operating an unregistered trading platform and offering an unregistered crypto asset staking service.
Staking is a process that involves participating in a proof-of-stake (PoS) blockchain network by holding and “staking” cryptocurrency in a digital wallet to support network operations like block validation and transaction processing. In return, stakeholders earn rewards, usually in the form of additional tokens.
As U.S. regulations tighten on crypto-asset staking programs, exchanges like Gemini seem to be navigating these regulatory waters by extending these services to jurisdictions where they are permitted. The unfolding situation underscores the ongoing tension between crypto platforms and regulators as the industry continues to evolve.
With its latest move, Gemini continues to assert its commitment to providing its users with a wide range of investment options while working within the boundaries of varying global regulations. The new staking services in Switzerland and Turkey serve to increase Gemini’s reach and make cryptocurrency investment opportunities more accessible to users in these regions.