Based on the most recent two people familiar with the situation, the US-based cryptocurrency exchange Gemini, founded by Cameron and Tyler Winklevoss is planning to launch an international cryptocurrency derivatives exchange.
The exchange would specifically offer perpetual futures, a type of derivative that is prohibited in the United States for regular traders because it does not have an expiration date and can be traded with significant leverage, making it a high-risk product.
Nonetheless, international crypto derivatives exchanges have received a lot of attention in the days since the Commodities Futures Trading Commission (CFTC) filed a lawsuit against Binance, the world's largest crypto exchange by trading volume. As stated by the regulator, Binance was accused of violating US futures trading regulations and of operating illegally in the US.
Gemini's move comes after the demise of the multinational cryptocurrency exchange FTX, which opened up more opportunities for other trading platforms to gain market share in derivatives trading. A similar deployment is reportedly being considered by Coinbase, a cryptocurrency exchange based in the United States.
Coinbase, on the other hand, is concerned about regulatory action after receiving a Wells Notice from the US Securities and Exchange Commission (SEC). Brian Armstrong's company has yet to decide where the new trading branch will be located, but recent legislative changes in the UK and EU are encouraging.
The announcement of Gemini's next initiative follows a period of uncertainty surrounding the Winklevoss twins' company. The Trust was particularly hard hit by FTX's demise due to its former partner, the Digital Currency Group's Genesis. The issue, which became public in January, finally began to show signs of resolution in early February, with preliminary agreements on the sale of DCG's cryptocurrency lender.