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NOV 11, 2022

Gemini Is Built on Trust, Safety, and Compliance: Ask For Permission, Not For Forgiveness

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From day one, Gemini has prioritized the security of our customers’ assets. We never have and never will compromise on that point. As the crypto ecosystem emerges from infancy into adolescence we are more confident than ever that asking for permission, not for forgiveness will continue to be the central pillar of how we run our business.

It has been a tough couple of days for our industry. Our hearts go out to all those impacted by recent events at FTX. We are all working together to build a brighter future and moments like these are painful.

For the avoidance of doubt, Gemini has no exposure to FTT tokens or Alameda and no material exposure to FTX.

Gemini is a Full-Reserve Exchange and Custodian

Gemini is a full-reserve exchange and custodian. This means that all customer funds held on Gemini are held 1:1 and available for withdrawal at any time.

Gemini holds customer fiat currency in accounts that are segregated from our business, operating, and reserve bank accounts established specifically for the benefit of Gemini customers. We do not do anything with your fiat funds unless explicitly authorized and directed to do so by you.

Gemini holds customer digital assets in accounts that are segregated from our assets. We do not do anything with your digital assets unless explicitly authorized and directed to do so by you.

In addition to being a full-reserve platform, Gemini Trust Company, LLC is a fiduciary and qualified custodian under New York Banking Law and is licensed by the New York State Department of Financial Services (NYDFS). NYDFS imposes certain excess capital requirements and compliance standards for all assets held on Gemini. At any given time, Gemini is required to hold capital in excess of customer deposits and must report any material changes in this capital to its regulator.

Gemini is Highly Regulated

Since its inception eight years ago, Gemini has worked with regulatory stakeholders and lawmakers to help shape thoughtful regulation that fosters both consumer protection and innovation. We will continue to do this work. We have spent considerable time applying for and becoming licensed and regulated in various jurisdictions across the world. This is not the easier path (it is expensive and time consuming) but we believe it is the right one.

Gemini holds many licenses globally, including a New York trust license, state money transmitter licenses (or the statutory equivalent), an E-Money License from the Financial Conduct Authority in the UK, an E-Money License from the Central Bank of Ireland, and more.

Related to our licenses, Gemini must undergo annual audits of our financial statements and is subject to bank examinations conducted by NYDFS. We are also SOC 1 and SOC 2 compliant.

Ten years ago, we bought our first bitcoin on Mt. Gox. Those Wild West days informed us with regard to what needed to change. We built Gemini to be this change. We look forward to working with everyone in our industry to continue to build trust in this new magical frontier and unlock its ultimate promise.

Onward and Upward.

Cameron and Tyler

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