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As of early July 2019, Gemini is set to apply for a broker-dealer license. The exchange has already had involvement in the security token industry, and is now taking a step towards facilitating the trading of regulated security tokens.
The Gemini cryptocurrency exchange— which is famously owned by the Winklevoss twins— will reportedly apply for a broker-dealer license.
If approved, the license will be granted by the Financial Industry Regulatory Authority (FINRA).
In fact, Gemini has already had involvement in the security token industry.
In May 2019, Gemini partnered with securities tokenization platform Harbor. The deal allowed Harbor’s customers to invest with Gemini’s stablecoin— Gemini Dollar (GUSD).
According to CoinDesk, Gemini plans to allow securities tokenized on external platforms such as Harbor to be tradeable on Gemini.
However, the necessary approval isn’t likely to be granted anytime soon.
There are roughly 40 broker-dealer licenses related to digital assets under review by FINRA. Sorting through them all will take time, as some companies have already been waiting for as long as 14 months.
Notably however, Gemini maintains regulatory approval to provide custody of digital assets, but only at the state-level. The New York Department of Financial Services (NYDFS) granted such status back in 2015.
What do you think of Gemini applying for a broker-dealer license? Let us know what you think in the comments section below.
Image courtesy of Gemini.