Gemini Declares Exit from the UK, Shattering the 'Crypto Hub' Dream
Gemini Declares Exit from the UK, Shattering the 'Crypto Hub' Dream
U.S.-based cryptocurrency exchange Gemini has decided to exit the UK market, citing the country’s strict regulatory environment and declining operational efficiency, placing the British government’s ambition to build a crypto hub at a critical crossroads.
According to cryptocurrency outlet Cointelegraph on February 10 (local time), Gemini, founded by brothers Cameron and Tyler Winklevoss, recently announced a complete cessation of operations in the UK, the European Union, and Australia. Beginning March 5, all customer accounts will be switched to withdrawal-only mode, with final account closures scheduled for April 6. The move is widely interpreted as a strategic retreat aimed at reducing organizational complexity and improving profitability, alongside workforce reductions driven by the adoption of artificial intelligence technologies.
Gemini’s withdrawal has effectively dampened the ambitious plan unveiled in 2022 by then-Chancellor Rishi Sunak to turn the UK into a global hub for crypto technology. Susie Violet Ward, CEO of Bitcoin Policy UK, pointed out that the regulatory rulemaking process has become excessively protracted and that compliance costs are disproportionately high relative to market size, weighing heavily on companies. She emphasized that capital naturally flows to jurisdictions with regulatory clarity and trust, arguing that the UK’s opaque regulatory environment is hindering its ability to attract firms.
Indeed, Gemini has acknowledged the difficulty of gaining traction in overseas markets, stating that organizational and operational complexity has driven up costs and impeded growth. Going forward, the company plans to focus its resources on the U.S. market and its prediction market platform, which has attracted more than 10,000 users and recorded $24 million in trading volume since its launch in December. This signals an intention to prioritize the most developed capital market in the U.S. and a new growth engine in prediction markets, rather than pursuing further global expansion.
The UK Financial Conduct Authority (FCA) has tightened its grip by introducing strict marketing regulations aimed at consumer protection and market integrity. While the regulator’s hardline stance enhances consumer safety, it also imposes excessive costs and operational risks on businesses, accelerating the departure of major exchanges such as Bybit and Binance. Industry experts warn that unless the UK swiftly streamlines its regulatory framework, it risks ceding its competitiveness as a crypto hub entirely to the European Union’s Markets in Crypto-Assets (MiCA) regime.
Ultimately, Gemini’s exit from the UK underscores how difficult it is to strike a balance between regulatory rigor and industry development. As leading crypto companies turn away in the face of regulatory barriers, the government urgently needs to introduce more flexible and predictable institutional support measures if it hopes to preserve the crypto hub status it once promised.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses based on its contents. The information provided should be interpreted solely for informational purposes.*
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