US crypto exchange Gemini is set to expand its offerings in Australia with the launch of a new locally registered entity, and is taking a wait-and-see approach to recent draft laws expected to broaden oversight of the crypto sector.
Gemini’s head of Asia Pacific, Saad Ahmed, told Cointelegraph that Australia’s crypto penetration is “quite significant, somewhere in the range of 23 to 25%” which leaves the exchange with “headroom for growth.”
On Thursday, the exchange said it created a local entity registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s financial intelligence agency, enabling it to provide access to local payment rails.
Gemini has been available to Australians since August 2019 under its global business, offering trading on a limited number of assets and with limited and expensive payment options.
Local entity opens door to Australia
Ahmed said its registered local entity, Gemini Intergalactic Australia, means it no longer has to walk a strict legal tight-rope when undertaking marketing, integrating local payment rails and offering financial services to Australians.
“We’re changing that because we think Australia is a market that we want to be in, and it’s a market that we want to grow, so we’re going to build a local team here,” he said.
The company will be based out of Sydney and has appointed James Logan, who previously led the local entities of rival exchanges Luno and Bitget, to head its Australian operation.
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Ahmed said that the exchange is working on obtaining an Australian Financial Services License (AFSL) to offer services such as crypto staking and credit cards.
“We’re not going to have all of the products that we offer in the US, for example, the credit card and staking, out of the gate, but we’re working on it,” he said.
Gemini will wait and see on crypto laws
Gemini’s founders, Tyler and Cameron Winklevoss, are known for their deep involvement in US politics, but Ahmed suggested Gemini’s Australian arm won’t take a similar approach and will instead sit back and observe a government consultation that will overhaul Australia’s crypto laws.
The Albanese government released draft legislation and kicked off a consultation last month that seeks to tighten oversight on crypto exchanges and companies by requiring them to obtain an AFSL, which was welcomed with caution by the local industry.
“There’s going to be some back and forth between the industry and and the government for some time,” Ahmed said. “We’ll probably take the position of just observing and seeing how things play out over the next few months.”
“There’s limited upside for us to respond to the laws that have come out,” he said. “There is an existing ecosystem here, we’re somebody new that’s coming in, and we just want to make sure that we’re building and focused on our customers.”
“We’re confident that whatever regulation comes into effect, we’ll be well prepared for it and we’ll be able to comply with it,” Ahmed said.
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Additional reporting by Jesse Coghlan.