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The state of New York is considered to be strict, in terms of overt pressures of regulations, especially in the new-age cryptocurrency industry. But a recent breakthrough, as we may call it, has made it possible for Gemini to announce support for Compound, Amp, and Pax Gold.
On Friday, the popular crypto exchange, Gemini announced that the traders could begin depositing Pax Gold, Amp, and Compound onto their accounts. The trading of these assets will begin tomorrow which is 15th, September. The New York-based exchange led by Cameron and Tyler Winklevoss implied that the exchange will be offering US dollar trading pairs for the new tokens mentioned above. This will be achieved through its ActiveTrader platform and its API connections.
Amongst the three additions, the most striking is the inclusion of $COMP, which is the governance token of the leading decentralized lending protocol Compound. Having a governance token points out in the direction of decentralization as it is used to vote on updates to the network. $COMP can be earned by any person who lends out money on Compound. But as we are aware that earning such governance tokens might be a new affair and a part of the new DeFi craze many regulators may have had problems with the coin. But despite New York state regulators being known for their tough stance on issues, it is fine with Gemini listing the token.
Another token that has been listed is Amp which is known to be digital collateral offering verifiable collateralization for any kind of value transfer. The trading volume in the past 24 hours was $337,684. It has also decided to list Pax Gold (PAXG) which is a stablecoin pegged to the price of gold. Its market cap stands at more than $61 million. Despite having strict police-state-like norms, Gemini said that it has ensured it has followed all the necessary regulatory steps so that these listings could happen. If exchanges in the state need to list licenses they need a BitLicense to do so enumerating the harsh regulatory ecosystem prevalent in the state today. Officials from the exchange said:
“We have worked closely with the New York State Department of Financial Services to obtain approval to offer trading and custody services for these new assets and we look forward to continuing to bring mission-oriented projects to you in the future.”
Tyler Winklevoss took to Twitter on Friday saying that the DeFi revolution is upon them. Gemini is known to list fewer assets, and Compound will become the first DeFi token available to trade on the exchange. Adding these three newbies, the exchange now offers a total of 12 assets available to trade on the exchange.
Source: Twitter
As of now, Gemini seemingly may be behind in the DeFi space because many other exchanges have already listed DeFi tokens for some time now. But this move by Gemini, taking one step at a time and undergoing every regulatory procedure will be in the best interest of the exchange to list many more such tokens.