In reaction to the continuing exodus of cryptocurrency firms from the United States, cryptocurrency exchange Gemini recently announced that it would focus more on Asia.
Gemini is the latest US exchange to move its engineering hub and developers to India as the regulators’ clamp down on crypto continues.
Gemini’s newly named CEO, Pravjit Tiwana, revealed the decision on Gemini’s official blog. According to Tiwana, the Gurgaon office will be the second-largest Gemini engineering hub behind the US.
Gemini Aims To Develop The Next-Generation Web
While disclosing the recent plans, Pravji emphasized that the expansion will significantly contribute to its operations.
The CEO mentioned some areas of focus, including the development of next-generation web, core platform fundamental in compliance, data pipelines and warehousing, security, and payments.
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Gemini also plans on building new NFT features and advancing the crypto marketplace. The features will be accessible to different users from over 70+ countries.
Notably, India wasn’t very attractive to firms due to the uncertainty surrounding current cryptocurrency rules. The government has not yet fully embraced digital assets, and the central bank has great contempt for them.
However, things are changing in India. Earlier this month, India’s finance minister Sitharaman, suggested that the G20 countries should create a standard framework for crypto. The changing environment may have motivated Gemini to open its engineering hub in India.
Crypto Exchanges Are Searching For A Favorable Regulatory Environment
There have been a lot of enforcement actions against many crypto firms by the US Securities and Exchange Commission (SEC) since the beginning of 2023. Even while the case with Ripple is yet to end, the SEC has continued targeting other firms alleging non-compliance with Federal laws.
Countries such as Japan and Singapore, in particular, have already established a regulatory framework for cryptocurrency. But the United States and the UK are still behind in clarifying the stance for the industry. According to a Reuters report, Coinbase CEO Brian Armstrong advised the US and UK regulators to clarify their crypto regulations.
Armstrong believes it will prevent firms from developing offshores where crypto is accepted and supported with regulatory clarity. Recently, Coinbase bagged an operating license in Bermuda and plans to expand to the country.
Also, Gemini’s strategic turn towards Asia can be interpreted as a means of utilizing the shifting regulatory environment in India.
Gemini aims to place itself in markets where the regulatory guidelines are clearer. The move will also ensure its survival, given that the US SEC had targeted its Earn Program, alleging Securities laws violations.
Featured image from Pixabay and chart from Tradingview