Crypto exchange Gemini seeks FINRA broker-dealer license

Image Credit: Gemini Twitter

Cryptocurrency exchange Gemini is reportedly seeking to obtain a broker-dealer license from the Financial Industry Regulatory Authority (FINRA), according to CoinDesk.

As per the report, regulatory approval from FINRA would make the Winklevoss-owned company an alternative trading system, which will enable it to trade securities and allow trading securities listed on other platforms. The report noted that Gemini wants to start allowing firms to trade and list digitized securities on its exchange.

Currently, Gemini is regulated by the New York Department of Financial Services (NYDFS), which enables it to provide custodial services on a state level.

However, it might take some time before Gemini can secure the license as FINRA has remained cautious of approving broker-dealer licenses for cryptocurrency-based firms. In fact, the report noted that as many as 40 applicants are waiting for the self-regulatory organization’s approval, with some waiting for more than a year already.

Gemini has previously worked with Harbor, a platform for tokenized securities trading. Under the deal, Harbor’s clients can purchase securities using Gemini’s dollar-pegged stablecoin GUSD and allow them to receive dividends from those securities in GUSD.

Last May, Gemini and payment startup Flexa started a retail initiative that facilitated instant cryptocurrency payments in stores and online for several retail merchants including Crate and Barrel, Nordstrom, Starbucks, Jamba Juice, Bed Bath & Beyond, and Amazon-owned Whole Foods. Through the new SPEDN mobile wallet app, consumers can pay merchants in Bitcoin, Bitcoin Cash, Ethereum, and GUSD.

Speaking of licenses, crypto exchange ErisX has recently been granted with derivatives clearing organization (DCO) license from the United States Commodity Futures Trading Commission (CFTC) that will make digital asset future contracts available for trade on its derivative markets.

Facebook, on the other hand, is also allegedly eyeing to secure a BitLicense from the New York State Department and Financial Services for its cryptocurrency project Libra.