Gemini announced in early February that it will withdraw from the UK, focusing its efforts on the US and Singapore. This decision deals a significant blow to the UK’s ambitions to be Europe’s crypto hub and highlights the obstacles platforms face on the continent.
Gemini explained its decision to leave the UK as part of a strategic refocusing driven by the sustained increase in compliance costs and the organizational complexity of operating in multiple foreign jurisdictions. According to the company, concentrating resources in countries with clearer regulatory frameworks would improve operational efficiency and reduce legal uncertainty.
From within the industry, the move was interpreted as part of a broader trend among crypto platforms to scale back their international presence to alleviate the regulatory burden. In this context, the withdrawal is not solely due to local conditions, but rather to a global reassessment of the cost-benefit of maintaining operations in markets with still-evolving regulations.
The UK stood out as a particularly challenging case, where analysts and executives agree that regulatory fragmentation and the slow pace of rulemaking have acted as a strong deterrent to new investment. This environment has made it difficult for companies to justify capital commitments and long-term expansion plans.
An unclear regulatory framework and US-based company concentration
Industry leaders pointed to a lack of clarity as a key obstacle. Susie Violet Ward, CEO of Bitcoin Policy UK, stated that the absence of concrete regulatory definitions complicates companies’ strategic planning.
Other executives focused directly on costs. Asher Tan, CEO of CoinJar, emphasized that the UK’s shift from a limited AML registration scheme to an authorization regime under the Financial Services and Markets Act significantly increased operational requirements.
Operationally, Gemini confirmed that UK accounts will be switched to withdrawal-only status starting March 5, with a complete shutdown planned for April 6. In parallel, a planned reduction of approximately 25% of its global workforce was reported.
While policymakers are working on a more comprehensive prudential regime for crypto companies, this framework is not expected to be ready until October 2027, leaving a prolonged transition window.
