US crypto exchange Gemini has big plans for expansion, and has set its sights on securing more licenses in Southeast Asia before the year is out, its APAC head tells MONIIFY.
The push has been a while in the making. It’s been almost two years since the Winklevoss-founded platform announced its big plans for expansion in the region and a year since it tapped ex-Grab executive Saad Ahmed to lead that charge as its head of APAC.
During that time the firm’s local operation has bagged an in-principle approval for a Major Payment Institution license in its local base of Singapore, grew its team to 50, and identified target markets, although Ahmed wouldn’t reveal which he has in his sights.
It’s easy to see the appeal of an Asian push. After all, nine of the top 20 nations in Chainalysis’ recent crypto adoption index are in Asia, with SEA countries totaling hundreds of billions in crypto value received.
For retail investors, this could mean more options for regulated platforms to trade crypto.
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Small footprint, big dreams
Despite operating in more than 60 countries, Gemini isn’t exactly a heavyweight exchange.
Binance-owned CoinMarketCap ranks Gemini 24th, based on traffic, liquidity and trading volumes. It has 123 trading pairs and supports 85 tokens: relatively small fry, compared with Bitget’s 1,253 trading pairs and 821 listed coins.
Still, Ahmed says that APAC is their second-biggest market after the US. While he didn’t specify their local operational scale — common for exchanges — he says their strategy hinges on one big promise: compliance.
“We ask for permission, not for forgiveness,” insists Ahmed, alluding to competitors that have had to reapply for operating licenses in the region after getting kicked out for regulatory violations.
That’s a claim that’s not exactly supported Gemini’s recent history. The platform’s had its share of problems with regulators, both in Asia and on its home patch.
In May 2023 — prior to Ahmed joining Gemini to spearhead its Asian offensive — the Securities and Exchange Commission in the Philippines flagged the exchange’s derivatives platform for allegedly operating without proper registration, warning investors that it was operating illegally. Gemini has since removed the Philippines as a market where it offers derivatives.
And in the US, Gemini’s fallen foul of regulators in more recent times. This month, it reportedly agreed to pay a $5 million penalty to the Commodity Futures Trading Commission to avoid civil trial for allegedly making false statements on one of its Bitcoin offerings.
It also hit turbulence at home last year when it had paid back more than $2 billion to customers who lost money through a program that the exchange ran together with now-bankrupt lender Genesis Global.
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Playing the long game
In Asia, Gemini’s approach to growth will be to go deep into priority markets rather than spreading itself too thin, says Ahmed,
“We have to be really selective about the markets that we want to go deep in,” he says, adding that future listings or currency pairs should align with their goal of offering users accessible and reliable trading options.
He says the company is well-aware that building a truly localized, compliant experience in the region will take time and resources.
The company evaluates markets based on factors like regulatory ease, localization needs and competition, he adds.
Some markets, like Japan and Korea, may be attractive because of their volume, but will also require significant localization, he says. Others, like Thailand or Malaysia, might offer easier entry points.
In the meantime, Gemini is beefing up its product lineup. The exchange recently hopped on the memecoin bandwagon and has seen some growth on its derivatives platform.
For retail investors in Asia, Gemini’s focus on compliance might be appealing — especially if you value security over flashy features. But for traders who need speed and accessibility to more fiat pairs might be better off looking elsewhere.
Edited by Tim Hume. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
