Cameron and Tyler Winklevoss, the founders of Gemini, are reportedly considering opening a second headquarters in the United Kingdom. The move comes as regulatory scrutiny increases in the United States. Several crypto exchanges have complained about the regulatory environment in the US, as regulators have doubled their enforcement actions against crypto firms in response to a series of collapses within the industry last year.
Gemini co-founders met with officials from the Financial Conduct Authority (FCA) and Bank of England as part of a larger plan to expand the business’s footprint outside of the United States. Gemini already operates in the UK under an FCA license, and the founders have described it as a second home.
Cameron Winklevoss praised the UK’s crypto and talent markets and projected that the company might one day have more employees outside the US. However, the exchange does not plan to leave the US and intends to continue fighting for a foothold there.
Legal Challenges and Opposition
Gemini survived 2021, but now it is facing legal challenges from the US Securities and Exchange Commission (SEC). The SEC has alleged that Gemini and Genesis failed to register its Earn product as securities, ultimately leading to the project being scrapped altogether. Gemini is fighting the regulatory action.
Setting up in the UK might not be smooth sailing, given the opposition to the industry. A recent report by the Treasury Select Committee of the British Parliament recommended that crypto should be regulated like gambling, calling into question how much friendlier the UK will be toward the growing industry. Despite this, Winklevoss has touted the UK’s crypto and talent markets as reasons why Gemini might open a second headquarters there.
Cameron Winklevoss said: “There are so many headwinds right now in the US it’s hard to get anything done there. And so in order to keep building our business and invest in hiring, we have to look elsewhere.” He continued: “We’re not leaving the US; we’re going to continue to fight the good fight there. But we also understand that you can vote with your feet.”
Gemini has been expanding its business outside of the US, which is increasingly becoming a regulatory minefield for crypto exchanges. Gemini has already established itself in the UK, but setting up a second headquarters there might not be easy as the UK is contemplating regulating crypto like gambling. Nonetheless, Winklevoss sees potential in the UK’s crypto and talent markets, making it an attractive location for a second headquarters.