Gemini Exits UK, EU and Australia Citing Costly, Uncertain Crypto Rules; BTC Flows Keep Rising

Published: 2026-02-10 10:35:43 |

Gemini announced it will withdraw services from the UK, EU and Australia to focus on the US and Singapore, blaming prolonged rulemaking, high compliance costs and an uncertain regulatory regime. UK industry figures — including Gemini UK CEO Susie Violet Ward, Crypto Council for Innovation’s Laura Navaratnam, and CoinJar CEO Asher Tan — cited regulatory delays, inconsistent stablecoin treatment and increased operational burdens tied to future FSMA/CP rules (capital, liquidity and bespoke crypto platform requirements planned for 2027). Despite the exit, Bitcoin demand remains robust: BTC spot ETFs recorded $144.9 million of net inflows on Feb 9, and Binance’s SAFU fund added 4,225 BTC (~$299.6m), raising its holdings to 10,455 BTC (~$734m). COINOTAG technicals flagged BTC near strong support levels (S2 ~ $68.3k; S1 ~ $62.9k) with short-term indicators showing oversold conditions (RSI ~32–35) and mixed trend signals. The report underscores that Gemini’s regional retreat reflects regulatory friction rather than falling crypto demand, and traders should monitor ETF flows, large institutional purchases (e.g., SAFU), and evolving UK/EU rules for short- and longer-term price catalysts.

Neutral

Gemini’s withdrawal is primarily a regulatory and operational decision rather than a demand-driven exit. Historically, exchange exits from jurisdictions (or delisting events) can create localized liquidity and access issues but do not necessarily reduce global demand for major liquid assets like BTC. Current on-chain and market signals — significant ETF inflows and large institutional buys (Binance SAFU adding 4,225 BTC) — indicate continued institutional appetite for Bitcoin, which supports prices. Short-term impact: neutral to slightly bullish volatility. Traders may see increased volatility around regional service wind-downs, potential US/Singapore inbound flows, and headlines about UK/EU rulemaking. Watch ETF flows and large-custody accumulation as immediate price drivers. Long-term impact: neutral to mixed. If the UK/EU implement stricter capital and liquidity requirements by 2027, some firms may avoid those markets, concentrating liquidity in jurisdictions with clearer frameworks (US, Singapore), which could shift custody and trading volumes but not reduce global BTC demand. Conversely, clearer, consistent regulation could attract institutional participation over time, ultimately bullish for market depth and price discovery. Comparable events: past exchange jurisdiction exits (e.g., some exchanges leaving the US or blocking services) caused access frictions but did not materially depress BTC’s macro trend when institutional demand remained strong. Key indicators for traders: ETF flows, on-chain accumulation by large holders, custody inflows/outflows, and regulatory milestones in the UK/EU.