How Gemini became crypto's most regulated exchange
Founded by the Winklevoss twins, the platform has faced legal scrutiny despite its cautious approach
Some crypto platforms prioritize variety and speed, while others focus on security and compliance.
Founded by the Winklevoss twins in 2014, Gemini has built its reputation around the latter, positioning itself as a highly regulated crypto exchange in an industry known for volatility.
Gemini explained
This centralized crypto exchange (CEX) allows users to buy, sell, and trade more than 150 different crypto assets. The platform also offers services such as staking (locking up assets on supported blockchains to help secure the network), trading, custody (securely storing and managing assets), and advanced professional trading tools.
Cameron and Tyler Winklevoss – widely recognized as the world’s first Bitcoin billionaires – created Gemini with the aim of building a trusted, regulation-first platform in the crypto space. Since its inception, the company has emphasized legal compliance, security, and transparency for its users.
From the start, Gemini pursued a regulation-first model, becoming the first crypto platform licensed by the NYDFS in 2015. It worked closely with regulators to meet strict requirements around custody, cybersecurity, and anti-money laundering—setting a precedent for how exchanges could operate under formal oversight.
The platform has since expanded its compliance framework. It also follows regulations in jurisdictions like France and the United Kingdom and reinforces its commitments through third-party audits, risk assessments, and security reviews.
Despite its compliance-first approach, Gemini has faced legal scrutiny. In January 2023, the SEC sued the company over its Gemini Earn service, alleging it offered unregistered securities through a partnership with crypto lender Genesis.
Genesis settled in 2024, but Gemini’s case remains unresolved. On April 1, lawyers for Genesis and the SEC requested a 60-day pause to explore a possible resolution.
In the meantime, Gemini has continued to expand its global reach. It has grown its presence in regions such as Singapore and, in January, revealed plans to relocate its European headquarters to Malta. The move is part of a broader strategy to align with jurisdictions that provide regulatory clarity for crypto businesses.
Gemini Dollar (GUSD)
In 2018, the company launched its own stablecoin, GUSD, which is pegged to the US dollar. Stablecoins are a type of cryptocurrency backed by assets like fiat currency or commodities. GUSD, an ERC-20 token built on the Ethereum network, is designed to maintain a 1:1 peg with the dollar.
To ensure its stability, Gemini holds reserves for every circulating GUSD in banks, money market funds, and US Treasury obligations. According to CoinGecko, there are currently 51.4 million GUSD in circulation.
Gemini’s position in the crypto landscape
Known for its focus on compliance and security, the platform continues to offer a wide range of crypto-related services. While legal challenges persist, Gemini remains a significant player in the evolving cryptocurrency market, combining caution with a clear global vision.
