Gemini’s decision to scale back operations in the United Kingdom, European Union and Australia has reignited concerns that the UK’s slow and fragmented crypto regulatory approach is pushing even well-regulated firms away — undermining the government’s long-stated ambition to become a global crypto hub.
The exchange said the move would allow it to refocus resources on the United States and Singapore, citing the growing complexity and cost of operating across multiple jurisdictions. While not singling out the UK, the timing of the decision has sharpened scrutiny of Britain’s unfinished crypto rulebook and the impact this uncertainty is having on investment and growth.
In 2022, then-Chancellor Rishi Sunak pledged to make the UK a global center for cryptoasset technology, announcing plans for stablecoin regulation and launching an FCA “CryptoSprint” to attract firms. Nearly three years on, industry leaders argue that progress has been too slow, leaving companies navigating overlapping regimes and interim guidance while waiting for a full framework that remains years away.
Why Gemini’s Exit Is a Blow for UK Policymakers
Industry groups say Gemini’s withdrawal sends a troubling signal at a sensitive moment for policymakers finalizing the UK’s new crypto regime. According to Susie Violet Ward, CEO of Bitcoin Policy UK, prolonged rulemaking, high compliance costs and regulatory overlap are discouraging firms from committing capital, hiring staff and scaling operations in Britain.
Ward said UK crypto businesses are currently operating under a “patchwork” system that combines AML registration, financial promotions restrictions and temporary guidance. When regulatory clarity is delayed and compliance costs outweigh market opportunity, companies naturally look elsewhere. “Capital goes where it can operate with clarity and confidence,” she said.
Laura Navaratnam, head of UK policy at the Crypto Council for Innovation, noted that Gemini was among the first firms to secure FCA registration in 2020, making its exit particularly significant. She described it as “a blow for policymakers” ahead of the upcoming authorization gateway, during which UK-facing crypto firms must apply for full FCA approval.
Under draft plans, firms will have a five-month window — from Sept. 30, 2026, to Feb. 28, 2027 — to secure authorization before the new prudential regime takes effect in October 2027. Navaratnam warned that unresolved issues, especially the interaction between FCA stablecoin rules and the Bank of England’s systemic framework, could create a regulatory “cliff edge” for companies transitioning between regimes.
Regulatory Friction and the Road Ahead for UK Crypto Firms
Executives say the shift from a narrow AML registration model to full Financial Services and Markets Act (FSMA) authorization is significantly increasing the operational burden on exchanges serving UK customers. CoinJar CEO Asher Tan said firms are now being forced to weigh the rising cost of compliance against the commercial value of remaining in the market.
Ward added that the UK has failed to clearly differentiate between Bitcoin and other cryptoassets in its regulatory approach and has not provided timely, actionable guidance. Surveys of UK crypto firms show that banking access remains a major challenge, with account closures and refusals increasing the likelihood that companies will relocate or exit entirely.
The Financial Conduct Authority is pressing ahead with consultations, including CP25/42, which proposes extending capital and liquidity requirements to crypto trading platforms, staking and dealing activities. The consultation closes this week, with the full regime expected to come into force on Oct. 25, 2027.
