Crypto Exchange Gemini to Launch Perpetual Futures Trading Platform by CoinEdition

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© Reuters Crypto Exchange Gemini to launch its perpetual futures trading platform
  • Gemini plans to launch a global cryptocurrency derivatives trading platform, specializing in perpetual futures contracts.
  • Recent developments in the industry, including the bankruptcy of FTX and regulatory issues for Binance, are creating opportunities in the market.
  • Coinbase (NASDAQ:) is also considering launching an offshore perpetual futures platform but is facing regulatory challenges.

According to a report by The Information, Gemini, a cryptocurrency exchange founded in the United States by Cameron and Tyler Winklevoss, plans to offer a global platform for cryptocurrency derivatives trading.

The proposed Gemini platform is said to specialize in perpetual futures, a type of derivative that is banned for retail traders in the US due to its lack of an expiration date and high leverage, which makes it a very risky product.

Gemini’s plan to launch an international cryptocurrency derivatives exchange follows significant developments in the cryptocurrency exchange industry. These include the bankruptcy of cryptocurrency exchange FTX in November and the recent lawsuit filed by the US Commodity Futures Trading Commission (CFTC) against Binance for violating US derivatives law. With the exit of FTX and the regulatory woes of Binance, there may be a significant market share available in the international derivatives trading industry.

Similarly, Bloomberg reported that Coinbase, a major US-based cryptocurrency exchange, is also considering launching an offshore platform that offers perpetual futures contracts.

However, Coinbase has its own regulatory challenges to contend with, having recently received a notice from Wells from the US Securities and Exchange Commission (SEC), indicating that enforcement action is likely on the horizon.

Sources familiar with the matter have reported that Gemini has been making efforts in recent months to contact trading firms and invite them to act as market makers for its international operations.

Post-Crypto Exchange Gemini to launch a perpetual futures trading platform debuted in coin issuance.

See the original on CoinEdition

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