“The next phase of crypto growth will be exponential,” says Gemini CEO

• Gemini’s EU chief focuses on regulation as the most important step for cryptocurrency growth.
• Bitcoin ETF approval signals US Securities and Exchange Commission’s shift in position, Lynch says.
• The prediction of Bitcoin price at $100,000 at the end of the year is still valid, she says.

Gillian Lynch is Head of Ireland and EU at Gemini, the US cryptocurrency exchange founded by Cameron and Tyler Winklevoss. FXStreet interviewed her during European Blockchain Convention 2024 in Barcelona, ​​where Lynch expressed optimism about the crypto industry as regulation and institutional recognition of the space grows worldwide.

Gillian Lynch, Head of EU and Ireland at Gemini, during the interview at the European Blockchain Convention 2024.

Q: Twins are now registered in many countries in Europe. Is this an effort aimed primarily at institutional investors or also at retail?

Our audience is very much a mix of institutional and retail. When Cameron and Tyler started the company 10 years ago, it was built for institutions before they expanded into retail two or three years ago. So both spaces are a priority and Europe is, within Gemini’s growth strategy for the next three to five years, a huge one.

Adoption has increased greatly, we are now looking at proportions of one in four people owning crypto. When I joined the company, it was one in 10. Regulation plays an important role because it allows companies like Gemini to understand the railings. You know what you can and cannot do. This is why you have seen a huge influx of companies into Europe.

Q: You mention the improvements in crypto regulation here in Europe, how does that contrast with the US?

What we have seen in the United States is regulation by enforcement. When you don’t know what handrails are, it’s very difficult to handle. To use an analogy, if you’re driving on the highway, a policeman stops you, you don’t know why, and says you’re speeding, but there was no speed limit on the highway. That’s how it is.

But now with Bitcoin ETFs, the US regulator is starting to backtrack from their original position, which they have to because crypto isn’t going away. If it is regulation by enforcement, companies will reduce their investment, which we have benefited from here in Europe with more investment.

So I think MiCA is the template that most regions will look at. Globally, we will see regulations, which are very important to protect consumers. Crypto is money, you protect people’s money. When our founders started Gemini, they focused on two things: that crypto would play a role in the financial ecosystem in the future, and regulation was needed. From day one, we’ve engaged with regulators globally, and now we’re starting to see that, which is great.

Q: In the past, we’ve seen some bad actors take the industry back a step before the regulations came. Do you still see a risk of bad behavior hitting crypto?

There will always be a risk of bad behavior and bad actors and it just depends on how fast regulation can catch up with innovation. Crypto is always moving at such a fast pace and regulation is always one step behind. Even with MiCA, we’ll need version two of it, because it doesn’t cover everything. But it’s a brilliant start. What we are seeing is the welcome regulation of the crypto community because we recognize that what happened in 2022 (the FTX bankruptcy, among other industry collapses) affected the entire industry and we are almost a year or two back. Now, it’s about building trust again. So education and regulation is a big part of that.

The SEC is slowly getting there, regulations will come to the US

Q: What do you think will happen with the SEC’s crackdown on several industry players? Do you think the upcoming US election will affect this?

The biggest takeaway from the US election is that crypto is a topic. It’s already phenomenal. Regardless of the outcome, what the industry is hoping is that someone who is pro crypto will be in power, which has to happen because the momentum is behind the industry now. The fact that they approved ETFs (spot Bitcoin and Ethereum), they are getting there, but it won’t come overnight. Regulators don’t just change like that. There is significant pent-up demand in the United States, people want to be educated about industry players they can trust, so the role of regulation is crucial.

Q: Do you think Gary Gensler should leave the SEC?

I will not comment on the details for several reasons. I am not an American citizen and Geminis are not political. However, whoever is in charge, with the current momentum we have, will follow, however you will see them change.

Q: Speaking of momentum, the approval of spot ETFs for Bitcoin and Ethereum in the US was a bit flatter than expected.

Well, if you look at the early take off, there were huge entries. If you compare these assets to any traditional assets, there will always be inflows and outflows. In the last week, we have again seen significant entries related to the fact that there are now also options. You just now see it as part of traditional finance. ETFs will be part of the crypto product suite and the ETPs here in Europe will now catch up.

There is a good demand. Ins and outs will always happen, I wouldn’t read too much into it. If you look at the underlying assets, Bitcoin holds its value. And like any other traditional investments, global economic circumstances will have an impact and you will see ins and outs.

Bitcoin price at $100,000? Huge crypto momentum can defy the global economy

Q: What do you think about the overall situation of the cryptocurrency market? Are we just on a set or is it a retreat? Are you optimistic about the year ahead?

Yes, I think we are at the beginning of the next phase. The crypto industry is growing. The next phase of growth will be exponential. Regulations like MiCA wouldn’t have happened if crypto wasn’t seen as systemic, if it didn’t have an important role in the financial ecosystem. The opportunities are huge and the part we haven’t yet practiced is the payouts. How does it become a part of your day? We still see it more as an investment vehicle, but let me go back to something my nephew said to me when I told him I was going to work in Gemini, he said, “come back to me when I can pay something with it. ”, and this is the reality.

Q: Crypto fundamentals are different from what moves traditional markets. How can exchanges or brokers like yours help traders understand how the market works?

You will never tell a trader what to buy or what not to buy. For active traders, our value proposition is to give them real-time information and a very elegant user interface and a reasonable price, they don’t expect us to be the cheapest. They expect value from what we offer. And then it’s about maturity in the industry, about finding the source of truth there. Most traders come from commercial backgrounds, so they will find their sources of information.

Q: Do you have a price target for Bitcoin in a year?

At the beginning of the year, we said we would reach $100,000 by the end of the year. I still stand by that prediction. The positivity and momentum in the United States is huge. That said, you can’t ride through global economic circumstances, so there’s also a lot of uncertainty. But we’ve seen people see crypto as a hedge against inflation, which is a huge use case. So if we see inflation pick up again, I would still stick with my prediction.