Gemini Enters Withdrawal-Only Mode in UK, EU and Australia; Cuts 25% Staff
Cryptocurrency exchange Gemini announced it will suspend trading and deposits for users in the United Kingdom, European Union and Australia effective 5 March 2025, placing affected accounts into withdrawal-only mode. The company also halted new registrations and incentive programs in those jurisdictions and said it will reduce global headcount by 25% as part of an operational realignment. Gemini attributes the move to mounting regulatory pressure — including UK FCA rules, EU MiCA implementation and heightened Australian oversight — and broader strategic adjustments, though it has provided limited public detail about custody arrangements or a deadline for withdrawals. Users are urged to secure accounts, verify withdrawal addresses and consider alternative compliant platforms. For traders, the immediate effects are likely to include liquidity shifts and short-term volatility in spot and regional markets, while the longer-term trend may favor consolidation toward larger, well-capitalized exchanges. Keywords: Gemini, withdrawal-only, regulation, job cuts, exchange exit.
Bearish
The news is likely bearish for Gemini’s token exposure and for short-term market sentiment tied to the exchange. Suspending trading and deposits in the UK, EU and Australia reduces user access and liquidity on Gemini, increasing the probability of outflows to other platforms and concentrated order books elsewhere. The announced 25% job cut signals operational stress and may further erode confidence. Short term: expect local liquidity draining from Gemini, higher volatility in spot markets where Gemini had significant flows, and possible price weakness for assets that relied on Gemini liquidity. Medium-to-long term: market consolidation may benefit larger, compliant exchanges, but persistent regulatory pressure and fragmentation of regional access could keep trading volumes subdued, limiting sustained bullish momentum. The absence of clarity on custody arrangements or a withdrawal deadline raises additional tail-risk, which traders may price in as downward pressure until resolution or migration completes.