Gemini is restricting its UK users to sending virtual assets to 58 providers. Concerns arise over the measures conflicting with Bitcoin’s principles.
In a recent announcement, cryptocurrency exchange Gemini released measures to comply with the controversial crypto Travel Rule in the United Kingdom. According to a Trezor analyst, the recent news has raised concerns among customers. Users believe that the recent actions may lead to overregulation by the exchange and could strip them of their freedom for self-custody.
The announcement,made on Nov. 7, states that cryptocurrency exchange Gemini is implementing changes to comply with the new Travel Rule restrictions for customers in the U.K.
Gemini stated it would allow cryptocurrency transfers to 58 virtual asset service providers (VASPs) registered under the Travel Rule Universal Solution Technology (TRUST) starting on Nov. 17.
Trezor Bitcoin analyst, Josef Teteka in a conversation with Cointelegraph, said the move will only limit users aiming for the independence of their crypto.
Tetek in response said that the requirements may involve users sharing vital information like their names and addresses, which may bring about disapproval “The forthcoming restrictions from Gemini UK will make it much harder for Bitcoin and other cryptocurrency users to move their assets into self custody,” he said.
“This goes against the fundamental principles of Bitcoin, where the user rightly enjoys freedom, privacy where required, and ultimately self-sovereignty.”
Gemini will also restrict inbound transfers from non-TRUST VASPs in December and may freeze or limit accounts that attempt to make these transfers.
Tetek said the situation is a worrying sign of over-regulation. It could lead to greater control of citizens and their financial choices. He added:
“As we’ve seen again and again, crypto exchanges can and do assume control and ownership of their user’s digital assets, a situation that can end in disaster. Why should they now also be the arbiters of transactional freedom?”
Several X (formerly Twitter) also expressed their disapproval of the recent Gemini announcement.
Robin Nakamoto on X(formerly Twitter) expressed his view and disapproval of the recent announcement, after receiving an email from Gemini.
Another user expressing his opinion said while many people believe that the only way to buy Bitcoin is on exchanges, it can also be obtained through mining, earning it through services, P2P transactions, or other methods.
The Travel Rule was created by the United Nations agency Financial Action Task Force in June 2019. The Travel Rule aims to prevent criminals from using crypto for illegal activity. The U.K. passed legislation to enforce the Travel Rule in September 2022.
The 58 VASPs not restricted by Gemini U.K. include Binance US, Coinbase, Circle, Fidelity Digital Assets, Kraken, and PayPal.
In recent news, the U.K. earlier released plans to regulate the crypto industry with formal legislation. The government announced in a consultation paper that it will be bringing in formal legislation for crypto activities by 2024.
This was released in a statement by Andrew Griffith, the U.K. financial services minister, announcing that the government already received input from crypto firms, traditional financial services firms, academia, and more, and aims to introduce crypto laws by 2024.
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