The US-based cryptocurrency exchange Gemini is preparing to enhance its presence in Australia by launching a new locally registered entity and is adopting a wait-and-see strategy regarding recent draft regulations aimed at expanding the oversight of the crypto industry.
Saad Ahmed, Gemini’s Asia Pacific head, informed Cointelegraph that Australia shows a substantial crypto adoption rate, estimated at “around 23 to 25%,” which indicates significant potential for growth for the exchange.
On Thursday, the exchange announced the establishment of a local entity registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), which is the country’s financial intelligence authority, allowing it access to local payment systems.
Gemini has been available to Australian users since August 2019 through its global operations, offering trading options on a limited array of assets with few and costly payment methods.
The local entity paves the way for Australia
According to Ahmed, the creation of Gemini Intergalactic Australia enables the company to navigate marketing efforts, integrate local payment systems, and provide financial services to Australians without stringent legal restrictions.
“We’re making these changes because we believe Australia is a market worth investing in, and we want to expand our presence here by establishing a local team,” he stated.
The company will operate from Sydney and has appointed James Logan, who previously led the local operations of competing exchanges Luno and Bitget, to oversee its Australian operations.
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Ahmed remarked that the exchange is in the process of acquiring an Australian Financial Services License (AFSL) to provide services like crypto staking and credit cards.
“Initially, we won’t have all the products that we offer in the US, such as credit cards and staking, immediately available, but we’re actively working towards it,” he explained.
Gemini takes a cautious stance on crypto legislation
Gemini’s founders, Tyler and Cameron Winklevoss, are recognized for their strong involvement in US politics. However, Ahmed indicated that the Australian division will opt for a more observant approach as the government conducts a consultation to reform Australia’s crypto regulations.
The Albanese administration published draft legislation and commenced a public consultation last month, which aims to enhance regulation on crypto exchanges and companies by mandating the acquisition of an AFSL, a move that was met with some hesitance by the local industry.
“There will likely be ongoing discussions between the industry and the government for a while,” Ahmed stated. “We plan to adopt a position of observation and will see how matters develop over the coming months.”
“We see limited benefits in reacting to the proposed regulations,” he continued. “The existing ecosystem is already established here, and as a newcomer, our focus is on our customers and building our services.”
“We are confident that we will be well-prepared for any regulatory changes that come into play, and we will comply accordingly,” Ahmed assured.
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Additional reporting by Jesse Coghlan.
