Gemini Exits 3 Continents, Cuts 25% of Staff in Strategic Pivot

25% of the workforce gone. Three continents abandoned. A crypto exchange that once championed global expansion now declares "America First."

Gemini announced Thursday it's shutting down crypto exchange operations in the U.K., European Union, and Australia while slashing a quarter of its global workforce. Customers in affected regions will enter withdrawal-only mode on March 5, with full closures following in April.

The message from co-founders Tyler and Cameron Winklevoss was blunt: "America has the world's greatest capital markets and America has always been where it's at for Gemini."

The Reality Behind the Retreat

Gemini's withdrawal isn't just about market performance—it's about regulatory complexity and operational costs. The exchange struggled to gain traction in markets where compliance requirements vary dramatically and customer acquisition costs remain high.

Customers in affected regions must now scramble to transfer assets through partner platform eToro. The abrupt timeline—less than two months for withdrawal-only mode—suggests this decision was driven by urgent financial pressures rather than long-term strategic planning.

The timing is particularly telling. As the U.K. and EU work to establish clearer crypto regulatory frameworks, Gemini is walking away from potentially lucrative markets. This suggests the company either couldn't wait for regulatory clarity or determined the compliance costs would never justify the returns.

Betting on Prediction Markets

But Gemini isn't just retreating—it's pivoting. The Winklevoss twins are doubling down on prediction markets, claiming they "will be as big or bigger than today's capital markets."

Since launching Gemini Predictions in mid-December, the platform has attracted over 10,000 users who've traded more than $24 million. These platforms allow users to bet on everything from election outcomes to economic indicators, potentially creating new revenue streams beyond traditional crypto trading.

The prediction market thesis is ambitious but unproven. While platforms like Polymarket have gained attention during election cycles, it's unclear whether sustained user engagement can match traditional financial markets.

Industry-Wide Headwinds

Gemini's struggles reflect broader crypto industry challenges. The company's shares have fallen 23% since early 2025, dropping another 2.8% on Thursday's announcement. Crypto-linked equities have underperformed broader markets as institutional interest wanes and liquidity tightens.

The workforce reduction signals more than cost-cutting—it suggests a fundamental reassessment of the crypto exchange business model. High operational costs, regulatory uncertainty, and intense competition have squeezed margins across the industry.

Other exchanges face similar pressures. The question isn't whether more consolidation is coming, but which players will successfully navigate the transition from growth-at-all-costs to sustainable profitability.