The cryptocurrency exchange Gemini has recently implemented changes in response to new regulations impacting virtual asset service providers (VASPs) in the UK.

On November 7, Gemini announced modifications to align with the latest Travel Rule regulations in the UK. These adjustments are in accordance with global standards mandating financial institutions and VASPs to share information regarding the senders and recipients of virtual assets. Gemini has partnered with Travel Rule Universal Solution Technology (TRUST) to facilitate compliance with these regulations.

By November 17, Gemini will restrict outgoing transfers of Bitcoin and other cryptocurrencies to a specific list of 58 TRUST-registered companies. Notably, major players like Binance US, Coinbase, Circle, Fidelity Digital Assets, Kraken, and PayPal are among those who are above restrictions, allowing them to continue transacting with Gemini's UK users.

The primary objective is to enhance transparency and ensure adherence to the Travel Rule. Additionally, starting December 1, inbound transfers from non-TRUST VASPs to Gemini may encounter restrictions to guarantee transparency in transaction information.

Moreover, users will be required to provide additional information when depositing or withdrawing from their Gemini wallet to another crypto address. This includes details such as their name, beneficiary information, and sometimes their address. Importantly, this information will only be shared between the sending and receiving providers.

Beginning November 17, 2023, Gemini will only support ERC-20 tokens, ETH, and BTC transfers. Unsupported tokens can still be traded and held within Gemini but will no longer be available for deposit and withdrawal, except for withdrawals to self-hosted wallets.

This strategic move aligns with Gemini's commitment to comply with the evolving regulatory landscape for the digital asset industry in the United Kingdom

Gemini's Commitment to Complying with the Evolving UK Government’s Regulations

The United Kingdom has been actively shaping a regulatory framework for the burgeoning crypto industry. This proactive approach involves the introduction of a financial promotion regime and the passage of a bill empowering law enforcement to seize crypto assets associated with illicit activities.

The Travel Rule, established by the Financial Action Task Force (FATF), a United Nations agenc, in June 2019, establishes global standards mandating Virtual Asset Service Providers (VASPs) and other financial institutions to share information about the senders and recipients of virtual assets.

The overarching goal is to create greater challenges for criminals attempting to exploit cryptocurrencies for unlawful activities.

In response to these regulatory developments, Gemini has undertaken a significant overhaul of its operations to ensure compliance. This includes the creation of dedicated social media channels for its UK customers and the addition of risk warnings on its platform.

The Travel Rule enforcement in the UK commenced in September 2022 following the passage of legislation in July of the same year.

While implementing these changes, Gemini actively encourages its UK customers to stay informed about the evolving landscape, underscoring its commitment to collaborative efforts with regulators to foster compliant, sustainable, and secure growth in the crypto industry.

The adoption of the Travel Rule is viewed as a progressive step in this direction.

Uk Customers to Consider Before Transacting Cryptocurrency

While these changes may seem inconvenient for some UK customers, they are an important step towards making the crypto industry safer and more compliant. Here are a few things that UK customers should consider before transacting cryptocurrency:

• Limited transfer options: Gemini's outgoing transfers will be limited to a specific list of TRUST-registered companies. This means that UK customers will have a more limited choice of crypto exchanges to transfer their assets to.

• Potential delays: Inbound transfers from non-TRUST VASPs to Gemini may face restrictions. This could lead to delays for UK customers who are trying to transfer crypto assets to Gemini from other exchanges.

• Additional information requirements: Customers will need to provide additional information, such as their name and beneficiary details, when depositing or withdrawing crypto assets. This information will be shared between the sending and receiving providers.

• Reduced token support: From November 17, 2023, Gemini will only support ERC-20 tokens, ETH, and BTC transfers. This means that UK customers will no longer be able to deposit or withdraw unsupported tokens to and from Gemini, except for withdrawing to a self-hosted wallet.

Overall, it is important for UK customers to be aware of the changes that Gemini has implemented in response to the UK's Travel Rule regulations. These changes may seem inconvenient at first, but they are an important step towards making the crypto industry safer and more compliant.

In addition to the above points, UK customers should also consider the following before transacting cryptocurrency:

• The volatility of cryptocurrency prices: Cryptocurrency prices are highly volatile, meaning that they can fluctuate wildly in value. This can make it difficult to predict when to buy or sell cryptocurrency, and it can lead to significant losses.

• The risks of fraud and scams: The crypto industry is still relatively new and unregulated, which makes it a prime target for fraudsters and scammers. UK customers should be careful of any investment opportunities that seem too good to be true, and they should always do their research before investing any money.

• The security of their cryptocurrency: Cryptocurrency is stored in digital wallets, which are vulnerable to hacking and other security threats. UK customers should take steps to protect their cryptocurrency wallets, such as using strong passwords and enabling two-factor authentication.

If you are considering transacting cryptocurrency in the UK, it is important to be aware of the risks involved and to take steps to protect yourself.