Gemini's Derivatives Exchange Operating Without Approval in Philippines
Gemini, the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, has been operating its derivatives exchange in the Philippines without the necessary regulatory approval, according to local authorities. The Philippine Securities and Exchange Commission (SEC) has issued a cease-and-desist order against the exchange, ordering it to stop offering its crypto derivatives products to investors in the country.
The SEC alleges that Gemini has been offering these products to Filipino investors without the necessary registration and approval from the commission, a violation of the country's securities laws. The regulator has warned investors to be cautious when dealing with unregistered entities, as they may not be subject to the same protections and oversight as registered entities.
This is not the first time that Gemini has faced regulatory scrutiny. In 2018, the New York State Department of Financial Services granted the exchange a license to offer trading of Bitcoin and Ethereum, making it the first licensed ether exchange in the United States.
The incident highlights the importance of regulatory compliance in the cryptocurrency industry. As the industry continues to grow and mature, regulators around the world are taking a closer look at crypto exchanges and other businesses operating in the space. Companies that fail to comply with local regulations risk facing fines, legal action, and damage to their reputation.
Overall, the case of Gemini's unregistered derivatives exchange in the Philippines is an important reminder of the need for regulatory compliance in the cryptocurrency industry. As the industry continues to evolve, businesses must stay up-to-date on the latest regulations and work closely with regulators to ensure that they are operating within the law.