Gemini adds the first DeFi token on its exchange after it got clearance from the American regulators and the token in question is Compound’s COMP as we are reading more in our crypto news today.
Gemini adds the first Defi-based token and also listed two more PAXG and AMP. Compound’s COMP token listing by Gemini marked the official entry of DeFi in New York which the NY users cannot use. The debt of DeFi lending is at $1.6 billion of which Compound holds a 45% share. Tyler Winklevoss, the co-founder of Gemini commented:
“The DeFi revolution is upon us.”
There’s still no regulatory clarity about the application of securities laws on cryptocurrencies as the authorities only laid down the guidelines about the distribution and control of these protocols. Entrepreneurs are advised to consult the US Securities and Exchange Commission before launching a token. While the regulators establish their formal position, most of the users have been using a listing on the Coinbase exchange as a proxy for regulatory approval. Coinbase’s addition of Compound’s COMP token marked the start of the current DeFi bull run.
Gemini created a conservative image as an exchange rather than Coinbase, by limiting the listings. Yesterday, Gemini added three cryptocurrencies which already include Bitcoin, Bitcoin Cash, Ethereum, Litecoin, DAI, Zcash, BATT, and Orchid. The announcement on the new listings reads:
“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”
Gemini is one of the few crypto exchanges to obtain a Trust Charter from the New York Department of Financial Services with the controversial BitLicense. Other exchanges such as Coinbase and BitPay are also among the exchanges that are qualified for the certification. The exchange users are looking to purchase or to sell COMP on Gemini now also have the possibility of lending and borrowing on Compound in New York as the users are provided with the option to trade the earned COMP for using the platform. Even the Coinbase users in New York are not allowed to trade COMP.
With more than $1.62 billion in debt on Defi lending platforms, Compound accounts for about 45% of the total debt. MakerDao and Aave are right after COMP.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]