Gemini is the last major crypto exchange to leave the US

As the Securities and Exchange Commission (SEC) cThe crackdown on the cryptocurrency industry continues, Gemini Trust Company is the latest firm to announce plans for international expansion.

The company, founded in 2015 by billionaire twins Cameron and Tyler Winklevoss, has plans to open a derivatives exchange in a foreign jurisdiction, Bloomberg reported Monday.

Moving shop

The twins had high hopes for the Gemini Trust Company, reportedly loaning it $100 million of their own personal fortunes. But Gemini operates in a climate where high-profile SEC actions against crypto operators are giving some investors and traders the feeling that it’s better to avoid crypto.

In January, the SEC charged Gemini Trust Company and another entity, Genesis Global Capital, with securities law violations. The agency claimed it had made unregistered securities sales through its Gemini Earn crypto-asset lending program.

Now, the Winklevoss twins appear to be the latest industry players to respond to the tone of the SEC guidance. Not to mention the severity of enforcement actions. They have decided to move part of the business offshore. And don’t deal with the SEC.

The Gemini news is the second announcement in recent days of re-shoring of crypto operations amid regulatory vendetta.

Late last week, Coinbase won a license from the Bermuda Monetary Authority. This is a big step in the international growth of Coinbase. And freeing at least some of the operations from the SEC’s purview.

Coinbase CEO Brian Armstrong has praised the UK’s push for “sensible crypto regulation.” He has implicitly contrasted this lenient approach with US regulators.

SEC charges Bittrex

Gemini Trust Company and Coinbase are not alone. In late March, Bittrex CEO and co-founder Richie Lai announced that the exchange’s exit from the US. In his March 31 announcement, Lai blamed regulatory issues for making a US base of operations difficult.

Lai stated, “Regulatory requirements are often unclear and enforced without appropriate discussion or input, resulting in an uneven competitive landscape.”

“Operating in the United States is no longer possible,” Lai said.

Securities and Exchange Commission Chairman Gary Gensler spoke to a US House committee last week about his opposition to cryptocurrencies.

Almost every week there is news of a high-profile SEC action. Just weeks after Lai’s announcement, the SEC moved to charge Bittrex with alleged securities law problems. The agency claimed that six Bittrex tokens were securities and therefore traded without proper registration. Shortly after the SEC announced its action, the prices of four of the tokens fell.