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Winklevoss twins expand crypto exchange into UK

The Winklevoss twins famously agreed a $65m settlement over its grievances with Facebook - Gemini/Gemini
The Winklevoss twins famously agreed a $65m settlement over its grievances with Facebook - Gemini/Gemini

The Winklevoss twins, who famously claimed Mark Zuckerberg swiped their idea to create Facebook, have expanded their cryptocurrency exchange into the UK.

Cameron and Tyler Winklevoss have received an electronic money licence from the Financial Conduct Authority (FCA) to introduce their Gemini Trust company into the British market.

Customers will be able to buy products and services with Bitcoin by using their debit cards.

Investors will also be able to buy crypto using sterling directly from their bank accounts without paying foreign exchange fees through bank payments systems like SWIFT or CHAPS.

The story of the Winklevoss twins, who were contemporaries of Zuckerberg while studying at Harvard, was immortalised in David Fincher’s 2010 hit movie The Social Network. The twins received a $65m settlement for their involvement in the creation of Facebook.

Gemini said its approval from the FCA reflected its “ethos” of working with regulators and “asking for permission, rather than forgiveness”.

“The UK has been a significant, global financial hub for centuries,” the company said.

“It is a pioneer in both financial innovation and regulation. We’re proud to help usher the crypto revolution into this historic market and become a part of its rich tradition.”

Gemini said it abided by “high regulatory standards” to safeguard customers funds and protect their privacy.

Bitcoin is widely considered to be the pre-eminent cryptocurrency since it was launched in 2009 by the mysterious Satoshi Nakamoto. The currency has endured massive fluctuations in price over the years reaching highs of as much as $10,000 (£7,730) in 2017. However, it corrected down as far as $5,000 shortly after the markets crashed and has been recovering steadily since, before reaching $12,000 in August. It has since moderated back down to just in excess of $10,000.

The Winklevoss twins were among its earliest investors, pumping $10m into the currency in 2012, with the investment tripling in value within a year.

The 39-year old pair claim that its business will offer secure protection against fraud and money laundering but will be going up against a series of other players in the European market.

In August, the FCA also gave crypto exchange Archax the green light to operate in Britain.

Facebook itself is also investing heavily in developing its own Libra cryptocurrency. The social media giant had planned to launch it within the first half of this year but regulators across the world have raised significant concerns with the currency.

In September of last year, France finance minister Bruno Le Marie urged Europe to ban Libra, claiming it would undermine the "monetary sovereignty" of governments. Despite the criticism, Facebook remains committed to the project.

Speaking of Facebook's currency last year, Cameron Winklevoss said that they needed to be "frenemies" or friendly enemies with Zuckerberg.