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According to The Information, the US-based cryptocurrency exchange Gemini Bracing, founded by Cameron and Tyler Winklevoss, is looking to launch an international cryptocurrency derivatives exchange. In this article, we have explained how Gemini is bracing to launch global crypto derivatives exchange. Read to know more about crypto derivatives exchange in detail.
The platform would specifically offer perpetual futures, a type of derivative that is prohibited in the United States for retail traders because it does not have an expiration date and can be traded with significant leverage, making it a high-risk product.
The announcement follows the bankruptcy of the FTX cryptocurrency exchange in November and this week's Commodity Futures Trading Commission (CFTC) lawsuit against Binance for, among other things, violating US derivatives law. Because of FTX's exit and Binance's regulatory issues, a sizable market share in international derivatives trading may be up for grabs.
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According to The Information, the US-based cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss, is looking to launch an international cryptocurrency derivatives exchange.
The platform would specifically offer perpetual futures, a type of derivative that is prohibited in the United States for retail traders because it does not have an expiration date and can be traded with significant leverage, making it a high-risk product.
The announcement follows the bankruptcy of the FTX cryptocurrency exchange in November and this week's Commodity Futures Trading Commission (CFTC) lawsuit against Binance for, among other things, violating US derivatives law.
Because of FTX's exit and Binance's regulatory issues, a sizable market share in international derivatives trading may be up for grabs.
In addition to the Gemini plans, it was reported earlier this month that Coinbase (COIN), a leading U.S. based exchange, was looking to launch an overseas platform to offer perpetual futures. Coinbase has its regulatory concerns, having received a Wells Notice from the United States Securities and Exchange Commission (SEC), indicating an impending enforcement action.
Gemini has been reaching out to trading firms in recent months to serve as market makers for an overseas operation, according to people familiar with the matter.
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