Crypto Exchanges Rethink Strategies Amid Stringent Regulations, Tecpetrol Ventures into Crypto Mining
Summary:
Cryptocurrency exchanges, including Kraken, Gemini and Binance, are exploring new strategies to adapt to the global tightening of crypto regulations. While Kraken is considering securities trading in the US and UK, Gemini is investing $24 million in its India expansion, and Binance has reopened its Belgium operations after a three-month break due to regulatory issues. Argentina's oil company, Tecpetrol, plans to use surplus gas for crypto mining to reduce environmental impact and generate additional profits.
In response to the global tightening of crypto regulatory frameworks, digital currency exchanges are exploring alternate business strategies. Kraken, for instance, is considering the introduction of securities trading in both the US and the UK in an effort to compete with popular apps like Robinhood that offer trading in crypto and stocks. Likewise, Gemini is investing $24 million to strengthen its foothold in India through its development center, while Binance has reestablished its operations in Belgium following a three-month pause due to local regulatory issues. Furthering its reach, Kraken has also broadened its European licenses, making euro-to-crypto transactions available in 27 European Union member countries and European Economic Area nations. These developments highlight the exchanges' adaptations to the evolving crypto laws and the ushering in of a new era of business practices.
Kraken is reportedly set to introduce a new division called Kraken Securities in 2024, enabling trading services for stocks and exchange-traded funds listed in the US and the UK. The expansion to trading beyond crypto would need authorization from the UK's financial regulators and the Financial Industry Regulatory Authority, which the exchange reportedly owns. On the European front, Kraken earned an Electronic Money Institution license from the Central Bank of Ireland and a virtual asset service provider (VASP) registration from the Bank of Spain. This green light allows Kraken's expansion into euro-to-crypto transactions across 27 EU member states and European Economic Area nations and offering exchange and wallet custodial services in Spain.
In a major expansion move, crypto exchange Gemini is allotting 2 billion rupees ($24 million) for its India operations. The investment will be channeled into expanding Gemini's development center in Gurgaon, a key satellite city of Delhi. After its establishment in May, the Gemini Gurgaon Development Center has broadened its workforce to over 70 staff members, actively hiring individuals across technical roles. Gemini's expansion plan aligns with the Indian government's firm stance towards fostering a conducive environment for startups.
Three months after the Belgian finance regulator directed the platform to discontinue its crypto services, Binance has resumed registrations and services for its Belgian clients. Although no explanation was provided as to the alterations facilitating this resolution, Binance reinstated that multiple services and products would again be accessible in Belgium upon the acceptance of its new Terms of Use. As part of its future plan, Binance aims to remove stablecoins from its European offerings by June 2024 to adhere to the forthcoming Markets in Crypto-Assets (MiCA) legislation of the European Union.
Finally, Buenos Aires's Tecpetrol, an oil-based firm, has decided to utilize the surplus gas from their operations for crypto mining. Striving to strike a balance between minimizing environmental footprint and boosting profits, they're set to launch their mining activities between late October and early November. This unique approach also involves collaboration with an American company already experienced in executing similar strategies.
Published At
9/29/2023 9:00:00 PM
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