Gemini Exits UK, EU, and Australia Crypto Markets: Regulatory Retreat or Strategic Pivot?
Gemini slams the brakes on three major markets—UK, EU, and Australia. The crypto exchange is pulling out, leaving users scrambling and regulators watching. It's a sudden retreat that raises more questions than answers.
What's Behind the Exit?
No official numbers were given, but the move speaks volumes. Compliance costs are soaring, regulatory frameworks are tightening, and the margin for error is shrinking. Gemini's decision to cut these regions suggests the math no longer works—or the legal risk is too high.
Users Get the Short End
Customers in affected regions face limited options: withdraw assets or watch access vanish. It's a forced migration, and not everyone has a smooth path forward. Some will likely abandon crypto altogether—a net loss for adoption.
The Bigger Picture
This isn't just a Gemini problem. It's a sign that crypto's 'move fast and break things' era is colliding with real-world regulation. Exchanges now face a choice: spend heavily to comply or exit markets that demand too much. Gemini chose the latter.
One cynical take? Traditional finance is probably smirking—another crypto firm tripped up by the very rules it tried to bypass. But in crypto, every retreat is someone else's opportunity. Watch for rivals to swoop in, regulators to tighten screws, and users to vote with their wallets. The game goes on—just with fewer players on this field.
Gemini has partnered with eToro as a transition route for its customers
Gemini has advised users to cancel recurring purchases, avoid new deposits, and begin unstaking any staked crypto immediately to avoid delays. Customers with open perpetual futures positions must close them before the withdrawal-only phase begins, or risk having their positions force-closed at market prices.
The exchange has urged customers to act quickly, warning that account verification, bank linking, and withdrawal address approvals can take time. In some cases, adding a new crypto withdrawal address may take up to 7 days to be approved, while unresolved account reviews may limit the ability to withdraw funds before closure.
Gemini also encouraged customers to download transaction histories and statements before their accounts are shut down because access will be removed after closure. Referral and promotional programmes have already been discontinued in the affected regions.
The company emphasized that funds provided for payment services are safeguarded under UK and EU e-money rules. However, they are not covered by deposit protection schemes such as the FSCS.
To help customers MOVE funds, Gemini has partnered with social trading platform eToro, offering a transition route and sign-up incentives for some users who transfer assets. However, customers remain free to move funds to any exchange or withdraw crypto to a self-custody wallet and fiat to a bank account.
Market watchers suggest the move is due to Gemini receiving regulatory approval in the United States to enter the prediction markets space. The company is focusing on US prediction markets amid dwindling crypto interest in the UK, as the bitcoin price fell below the 70k threshold.
Since launching in mid-December, Gemini Predictions has attracted over 10,000 users and more than $24 million in trading volume.
The move follows Gemini’s confirmation that it will shut down its NFT marketplace Nifty Gateway on February 23, following a prolonged decline in NFT trading volumes. As reported by Cryptopolitan, users were instructed to withdraw their assets before the shutdown, though NFT support will continue through Gemini Wallet.
Gemini plans to lay off 25% of its total global workforce
In an effort to become profitable, the restructuring is expected to include a reduction of up to 200 employees globally. This includes staffers in Europe, the US, and Singapore, representing about 25% of Gemini’s global workforce.
In its “Gemini 2.0” update, the company emphasized that smaller, AI-augmented teams are now more effective and aligned with its evolving mission. According to a US Securities and Exchange Commission (SEC) filing, the plan should be substantially completed in the first half of the year.
The company estimated that it will incur pre-tax restructuring and related charges of $11 million, substantially all of which are anticipated to result in cash expenditures. Most of the charges will be recognized in Q1 2026, it said. However, the timing of the changes, as well as the expected charges and expenditures, depends on local law and consultation requirements in various jurisdictions.
Gemini reported a GAAP net loss of $159.5 million in Q3 2025, or $6.67 per share, as its expenses grew more quickly than its revenues. GEMI shares fell 5.9% in the morning trading session as a result of a drop in risk assets, including cryptocurrencies.
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