Gemini crypto exchange chooses Ireland as its European headquarters.

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The cryptocurrency exchange Gemini, headed by Tyler and Cameron Winklevoss, declared that the Republic of Ireland will serve as its new base of operations in Europe.

Following a meeting with the co-founders of the cryptocurrency, Irish Prime Minister Leo Varadkar, and officials of the Industrial Development Agency (IDA), the organization in charge of attracting foreign investment to Ireland, the announcement was made.

The Winklevoss brothers made the following remark in a statement provided in an interview with publication Decrypt:

“We look forward to becoming a member of and contribute to the thriving digital community in Dublin. Crypto is just as revolutionary as the Internet, and we are dedicated to maximizing the potential it offers. We appreciate the Irish government’s and the IDA’s assistance as we take the next, exciting steps in our journey. ”

Problems with the U.S. government

We have previously reported that the Securities and Exchange Commission (SEC) charged Gemini in January with the sale of unregistered securities related to the now-terminated Earn program, amid a wave of broader crackdowns on cryptocurrency companies in the U.S. that also targeted other exchanges such as Kraken and Coinbase. Binance was also targeted by the CFTC. The regulator’s action prompted the exchange co-founders to start looking at other jurisdictions.

The Winklevoss twins visited London earlier this week and spoke with representatives from the Bank of England and Financial Conduct Authority (FCA), raising the possibility of the UK serving as a new headquarters for the cryptocurrency exchange.

Officials from the SEC claimed that Genesis’ lending activities and Gemini’s Earn Program both met the SEC’s definition of security. The SEC uses two criteria—an investment contract and a note—to decide whether an offering is a security. Earn Program meets both of these criteria.

According to the SEC, the Earn program netted the two businesses billions of dollars’ worth of cryptocurrency assets. The agency also stated that it was pursuing civil fines, expulsion from the SEC, and permanent directive relief against Genesis and Gemini. The SEC also stated that investigations into further alleged breaches of the Securities and Exchange Act as well as other organizations and people connected to the alleged misbehavior “are ongoing.”

Motion to dismiss the lawsuit

Recently, Gemini has submitted a request to dismiss the SEC’s case against it. The Master Development and Loan Agreement (MDALA), a scheme that promised high interest rates to the majority of investors, was used by the Gemini and Genesis platforms to fraudulently sell unregistered securities, according to the SEC.

JFB Legal has joined Gemini in preparation for its battle with the SEC. The founding partner of JFB Legal, Jeff Baughman, referred to the US regulator as “ill-conceived” in a post on Twitter.

Furthermore, the Earn program was not a securities offering, according to the exchange’s motion to dismiss brief. The MDALA agreement, which designates Gemini as the agent, is alleged by the commission to be an unregistered security. The trading platform says that the SEC’s allegations are without legal or factual support. It also draws attention to the paucity of details around the alleged transaction or the MDALA’s stipulations.

Not leaving the U.S.

Despite these problems, Gemini, however, does not want to completely leave the United States. In an interview with The Telegraph Cameron Winklevoss said earlier this week:

“The United States is experiencing so many obstacles at the moment that progress there is difficult. The UK is a great market to consider that. So, in order to keep building our business and invest in hiring, we have to look elsewhere.”

However, he added:

“We will not be abandoning the US; we will keep fighting the good battle there. However, we also recognize that you have the right to vote with your feet, and we will exercise that right in a hostile climate”

Ireland as the European Headquarters

“We also revealed that Gemini had relocated its European headquarters to Ireland. Onward!”

Tyler Winklevoss, CEO of Gemini, stated on Twitter that the conversations held in Dublin yesterday focused on “the profound promise of cryptocurrency and the importance of common sense regulation to realize that promise.”

Awesome meeting this morning with @LeoVaradkar, the Prime Minister of Ireland. We talked about the profound promise of crypto and the importance of common sense regulation to realize that promise. We believe MiCA is that common sense regulation. We also announced that @Gemini has… pic.twitter.com/Iv3NmPTmju

— Cameron Winklevoss (@cameron) May 25, 2023

The CEO said that Markets in Crypto Assets (MiCA), the most recent regulatory framework developed to oversee cryptocurrencies in the European Union (EU), is “that common sense regulation” in the eyes of Gemini.

The Central Bank of Ireland recognized Gemini as the first cryptocurrency business as a Virtual Asset Service Provider (VASP) in July 2022.

When the MiCA rule is completely implemented throughout the EU by 2025, according to Gemini’s president Cameron Winklevoss, Ireland will serve as the exchange‘s “entry point” into the rest of Europe.