Gemini, the U.S.-based cryptocurrency exchange founded by Cameron and Tyler Winklevoss, has announced its entry into the French market following its registration as a Virtual Asset Service Provider (VASP). This expansion positions Gemini as a key player in the European Union’s evolving crypto landscape under the Markets in Crypto-Assets (MiCA) regulatory framework.
Strategic Move into France
France’s proactive regulatory stance and growing crypto adoption were pivotal in Gemini’s decision to launch in the country. The exchange, which operates in over 70 countries, highlighted France’s supportive approach to the digital asset industry as a significant factor.
“France’s proactive engagement with and support of the crypto sector make it a promising market for Gemini’s expansion,” said Gillian Lynch, CEO of Gemini U.K. and Europe.
Gemini’s 2024 Global State of Crypto report revealed that France has emerged as one of the most crypto-friendly countries globally, with crypto ownership rising by 2% since 2022 to 18%. This growth, coupled with declining regulatory concerns among French consumers, signals increasing confidence in the industry.
France: A Crypto Hub in Europe
France has seen a surge in crypto activity, becoming home to notable projects such as Ledger, the hardware wallet manufacturer, and DeFi platform Morpho. The country’s robust VASP regulations and MiCA reforms are expected to further solidify its status as a crypto hub.
According to Gemini, France’s regulatory clarity not only protects consumers but also fosters innovation, making it an attractive destination for crypto companies.
Challenges Elsewhere
While Gemini is expanding in France, it has pulled back from Canada due to stricter regulations in the country. The contrast underscores the importance of regulatory environments in shaping crypto business strategies.
Past Challenges and Renewed Focus
Gemini’s expansion follows a tumultuous period, including the company’s decision to return $2.18 billion in crypto assets to users of its Earn program, which was frozen during the market downturn in November 2022. Additionally, Gemini recently settled with the New York Department of Financial Services, agreeing to pay $37 million for regulatory failures.
Looking Ahead
With France at the forefront of crypto adoption in Europe, Gemini aims to leverage this opportunity to expand its footprint in the region. As MiCA regulations roll out, Gemini’s entry into France could set a precedent for other exchanges eyeing the European market.
