Gemini’s UK Pullback Seen as Setback to Britain’s Crypto Hub Ambitions
Gemini, a cryptocurrency platform, has it will no longer do business in the UK, EU, or Australia. Instead, it will focus its resources on the US and Singapore.
The decision, announced in a business strategy update on February 5, 2026, has prompted new questions about the UK’s ability to attract and retain key participants in the digital asset industry, even though the country has repeatedly promised to become a top crypto jurisdiction.
Challenges in Operations and Strategic Refocus
Gemini that foreign markets were “hard to win” and that the company’s growth into new countries had left it “stretched thin.” This has made the organization more complex and more expensive, so they are now focusing on key markets to simplify things. As part of its attempts to be more efficient, the platform has cut its global workforce by about 25%.
Gemini’s UK affiliates, Gemini Intergalactic UK and Gemini Payments UK, will go down in stages, begining with the UK. begining on March 5, 2026, customers will only be able to withdraw money from their accounts. All UK accounts will be closed on April 6, 2026. When asked about the UK exit, Gemini refused to say anything more.
Industry Analysts Point Out difficultys with Regulations
Experts have said the exit shows there are largeger difficultys with the UK’s evolving crypto landscape. Susie Violet Ward, the CEO of BTC Policy UK, said that protracted rulemaking processes, overlapping regulatory regimes, and compliance costs that are too high for the market size are among the main reasons people don’t want to use BTC.
Ward said, “Capital goes where it can operate with clarity and confidence.” He went on to say that the current situation is a “patchwork” of registration, limits on financial marketing, and interim advice, and that a full regime is still “years away.”
Ward also criticised the lack of clear differences between BTC and other assets, as well as the absence of timely guidance. He pointed out that many UK crypto enterprises have had their accounts closed and banks refuse to do business with them, which increases the danger of businesses moving.
Laura Navaratnam, who is in charge of UK policy at the Crypto Council for Innovation, said that the news was “a blow for policymakers” who are trying to finish the new rules before licence applications begin in September.
She discussed issues that still need to be worked out, namely how the s stablecoin standards and the Bank of England’s systemic regime interact. This might make it hard for companies to make the switch and could lead to further exits if not fixed.
Asher Tan, the CEO of the CoinJar crypto platform, said that moving from a limited registration approach to full Financial Services and Markets Act authorisation is “materially raising the operational lift” for platforms.
He said that, even though the regulatory direction is clear, businesses need to consider how much they are willing to spend on resources relative to market potential, and many are reevaluating their positions.
The UK Wants to be A Leader in Regulation
The UK has been trying to become a crypto hub since 2022, when it announced stablecoin rules and FCA projects. The sector is currently using temporary measures, but a proposed prudential system that includes capital and liquidity requirements for trading, staking, and dealing is set for comment and phased implementation through 2027.
The FCA’s gateway for full authorisation will open in September 2026, and the new rules will take effect in October 2027. People in the industry say that these delays and difficultys make it harder to attract well-regulated businesses, unlike places where the rules are clearer.
Gemini’s cutbacks fit with what has happened at other global platforms, which have left some markets when their business priorities change.
The departure highlights the continuous conflict between lofty policy aspirations and real-world regulatory obstacles, which could affect future participation in the . As the country works on its framework, this episode serves as a reminder of how hard it is to attract new digital asset innovations.
