Cryptocurrency exchange Gemini’s newly announced, controversial UK travel rule represents a “worrying move” towards over-regulation and risks cryptocurrency users losing their freedom to hold their own assets, according to a Trezor analyst.
On November 7, cryptocurrency exchange Gemini declared It has made changes to its policies to comply with new restrictions imposed by travel regulations for UK customers.
Gemini said it will restrict outbound cryptocurrency exchanges to a list of 58 virtual asset service providers (VASPs) registered under the Universal Travel Rule Technology (TRUST) from November 17.
Speaking to Cointelegraph, Joseph Tedega, a Bitcoin analyst at Trezor, said the move will only serve to limit options for those who want to self-protect their cryptocurrencies.
“Gemini restrictions in the UK will make it more difficult for users of Bitcoin and other cryptocurrencies to move their assets into self-regulation,” Detek said, adding that the requirements include name, username, and others. Cases, even residential address.
“This goes against the fundamental principles of Bitcoin, where the user enjoys freedom and privacy when necessary, and ultimately self-sovereignty.”
It’s a dog
Just got the email @Gemini
“Travel Rule: Changes to Crypto Exchange Requirements for UK Customers”
N A**, Rishi is a global hub for cryptoassets!
(I don’t use Gemini anyway but still ♂️) pic.twitter.com/tuqhSLyZgg
— Robin Nakamoto (@RobinNakamoto) November 3, 2023
It’s a peach
Just got an email from @Gemini
“Travel Rule: Changes to Cryptocurrency Exchange Requirements for UK Customers”
My donkey, Rishi, is the global hub for cryptocurrencies!
(I rarely use Gemini, but still)
— Robin Nakamoto (@RobinNakamoto)
Gemini said its UK restrictions will also apply to transfers received from non-trust VASPs from December. Gemini said it may freeze or restrict accounts attempting to make incoming transfers.
The lawsuit in question represents a “disturbing development in over-regulation” that could result in “restriction of the choices that ordinary citizens make about how they save, spend and transfer their assets.” He added:
“As we’ve seen time and time again, cryptocurrency exchanges can take control and ownership of their users’ digital assets, which can end in disaster. Now why should they be the arbiters of their customers’ transactional freedom?
Many X (Twitter) users also expressed their disagreement with Gemini’s latest announcement.
Many people have the misconception that the only way to get Bitcoin is to buy it on exchanges. This belief is far from the truth. There are countless alternative ways to acquire Bitcoin, such as mining, earning through services or products, and P2P transactions.
— rare ☠️ passenger.gfm (@rarepassinger) November 7, 2023
Many people have the misconception that the only way to get Bitcoin is to buy it on exchanges. This belief is far from the truth. There are many alternative ways to buy Bitcoin, such as through mining, products or services, and P2P transactions.
— rare passenger.gfm (@rarepassinger)
The travel rule was developed in June 2019 by the United Nations agency’s Financial Action Task Force.
It is a set of global standards that require VASPs and other financial institutions to share information about senders and receivers of virtual assets. The aim is to make it harder for criminals to finance illegal activities using cryptocurrencies.
The UK passed legislation to implement the travel rule in July 2022. It came into effect in September.
Of the 58 VASPs, Gemini is not restricted to transacting with UK users They are Binance US, Coinbase, Circle, Fidelity Digital Assets, Kraken and PayPal.
“Internet evangelist. Writer. Hardcore alcoholaholic. Tv lover. Extreme reader. Coffee junkie. Falls down a lot.”