Gemini, the US-based crypto exchange, announced on Friday that it plans to open a derivatives platform outside the country.
The first product of the Gemini Foundation, as the new division is called, will be a Bitcoin (BTC) perpetual contract denominated in Gemini dollars (GUSD), the company said. Next up will be an Ether (ETH) perpetual contract, which is also linked to GUSD. Unlike traditional derivatives, perpetuals do not have an expiry date.
The announcement coincides with increased scrutiny by US regulators and lawmakers over the role of cryptocurrencies in the world’s largest economy — a campaign affecting Gemini. In January, the company and Genesis (which, like CoinDesk, is owned by Digital Currency Group) were accused by the Securities and Exchange Commission of selling unregistered securities.
Being based outside of the US does not mean that the Gemini Foundation will be out of the reach of US watchdogs. Binance, the largest crypto exchange, was sued by the Commodity Futures Trading Commission (CFTC) in March despite being based elsewhere (though the company has been hesitant about where). And FTX was based in the Bahamas, but former CEO Sam Bankman-Fried is facing US criminal charges.
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