The regulatory framework has tightened sharply in the US for crypto platforms. So much so that even Gemini, the platform more open to regulators, is fleeing? It would appear so, as the Winklevoss brothers have announced the opening of their European HQ in Ireland.
Gemini is exporting to Ireland to create a local base
It’s a local base to tackle the European market, not a Gemini move, but it’s still notable. The Winklevoss brothers have always been particularly open to regulation. But the regulatory environment in the US is particularly hostile at the moment, with Joe Biden’s administration intent on curbing the crypto industry’s ardour.
So the Winklevoss brothers have chosen this moment to start setting up shop in Europe. Gemini’s HQ will be located in Dublin, to take advantage of a favourable tax and regulatory environment. The Republic of Ireland is well known for attracting tech giants in particular thanks to this type of benefit.
Congratulations @Gemini -the first firm registered by the Central Bank of Ireland as a Virtual Asset Service Provider. This is significant for Ireland as the Government focuses on innovation as a driver of growth. I wish Gemini every success as they build their team in Ireland. pic.twitter.com/Y3WULIqwNc
– Leo Varadkar (@LeoVaradkar) May 25, 2023
The Prime Minister of Ireland, Leo Varadkar, welcomed the move, and highlighted the innovative capabilities of the cryptocurrency sector. Cameron Winklevoss, for his part, reiterated his desire for sound regulation, and that MiCA regulation was appropriate in his view:
“We think MiCA is common sense regulation “
As a reminder, MiCA is an overarching European regulatory framework that governs how exchange platforms must collect user data, among other things.
A European exodus from crypto platforms?
Gemini is not the only US platform to feel constrained across the Atlantic. While the Securities and Exchange Commission (SEC) has unleashed an unprecedented campaign to muzzle crypto companies in recent months, other territories are starting to look like havens. Coinbase, which is in the midst of legal troubles with the SEC, has announced the creation of an international hub in Bermuda.
As for Binance, it has registered with the financial authorities in several European countries. It seems that the largest platform is keen to gain a foothold on the Old Continent to counterbalance its presence in the United States. This concern was underlined by rival Coinbase, which stated in September 2023 that expansion into other countries was “almost an existential priority”.
It is therefore conceivable that the trend will continue. For the ecosystem, this could be a sign of decentralisation: it is still very much centred around the United States. It remains to be seen whether the trend initiated by MiCA will continue, and whether regulations will not gradually tighten in Europe as well.
