Gemini, the U.S.-based crypto exchange, revealed Friday that it plans to open a derivatives platform outside the country.
The first product at Gemini Foundation, as the new division is called, will be a perpetual bitcoin (BTC) contract denominated in Gemini dollars (GUSD), the company said. An ether (ETH) perpetual contract also linked to GUSD will come next. Unlike conventional derivatives, perpetuals don’t have an expiration date.
The announcement coincides with increased scrutiny by U.S. regulators and lawmakers about the role of cryptocurrencies in the world’s biggest economy – a campaign that’s affected 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.
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Being based outside the U.S. does not mean Gemini Foundation will be out of reach of U.S. watchdogs. Binance, the biggest crypto exchange, was sued by the Commodity Futures Trading Commission (CFTC) in March, despite being based elsewhere (though the company has been coy about where). And FTX was based in the Bahamas, yet former CEO Sam Bankman-Fried faces U.S. criminal charges.