Gemini bullish on UK market as crypto adoption climbs to 24%, but says many still waiting on regulatory 'stamp of approval'

In an interview with The Block during Zebu Live in London on Tuesday, Gemini Head of UK Daniel Slutzkin emphasized the crypto exchange's bullish stance on the market — highlighting its 2025 Global State of Crypto report showing the country saw the biggest year-over-year adoption jump of any of the nations surveyed, growing from 18% to 24%.

Slutzkin noted that Gemini has been registered in the UK since 2020, becoming one of the first crypto firms to receive regulatory licenses, with the country now a key market for the exchange. He added that Gemini has established offices in central London and made several key hires over the past year.

"London has been a financial hub for centuries, and that's really going to follow when it comes to digital assets," he said. "So the company is very much behind it and doing a lot of investment."

Slutzkin described the growth in UK adoption as encouraging and heading in the right direction. However, he also warned that feedback indicated many people are still waiting for further regulatory clarity to provide a "stamp of approval" before they start to dip their toes into crypto — despite 40% to 45% of its customers being under 35.

Gemini has been in regular dialogue with the Financial Conduct Authority, the UK's financial regulator, since entering the country, noting there had been a "marked change" in its attitude toward the industry and openness to engaging with crypto firms compared to a few years ago.

The UK has adopted a phased approach to crypto regulation, aiming to position itself as a global hub for digital assets while prioritizing consumer protection and financial stability.

Comprehensive regulations covering stablecoins, trading platforms, lending, staking, and custody are also currently under consultation, with full implementation expected in 2026.

"It feels like 2026 is definitely going to be the year when the framework is put out there. But whether it's January or December, or sometime in between, no one really knows," Slutzkin said. "It's good for investors to see. It's good for companies to be able to say we are regulated, and to be able to hold their heads up a bit higher when they are marketing products."

Nevertheless, Slutzkin said upcoming UK regulations are unlikely to significantly alter Gemini's core focus on exchange, custody, and staking services, noting the firm already operates with strong governance and compliance standards. While he expects any new framework to focus more on business conduct than product restrictions, Slutzkin urged regulators to move faster so firms can prepare and adapt in time.

"The sooner we see it, the better," he added. "From the start, we've done things with a regulatory first approach and attitude, hopefully that sets us in good stead." It's that regulatory-first, educational approach that Slutzkin sees as Gemini's key differentiator, focusing on the legitimacy and credibility of their products so that users feel their assets are safe and not on some "risky exchange."

Like its rivals, some of the areas in which Gemini remains restricted in the UK are in derivatives trading and tokenized stocks, services that it has already rolled out in Europe.

"So the plan is to continue to invest in the product, improve what we've got, and make it the best offering out there. Good UX, good customer service as well. Look to add to it whatever we can within our legal framework, make sure we stay onside with the regulator, which we always have done, and wait to see what comes up over the next six months in terms of this regulatory framework," Slutzkin said.

New UK tax reporting requirements

One of the upcoming legislative changes in the UK crypto space that is in place is automated tax reporting to HMRC by centralized exchanges, requiring them to provide account details and transaction histories for all UK users.

"We welcome more clear and progressive legislation in the UK, and the CARF regime is ultimately seeking to address tax evasion and a lack of transparency which will help support it as a legitimate asset class," a Gemini spokesperson said after the interview.

"Nevertheless, this will require considerably more reporting requirements and place a burden on firms' compliance teams. Large firms like Gemini are well prepared to meet these expectations with a strong UK Compliance and Legal team already in place, and experience with similar reporting overseas. However, smaller start-ups may struggle to comply and absorb heavy compliance burdens, which would deter them from operating out of the UK," they said. "Additionally, some users may argue that this will undermine the privacy ethos associated with decentralization."

As the scope of the new rules generally falls on centralized exchanges, it could potentially incentivize greater DeFi activity as a consequence. "Hopefully it doesn't push people towards decentralized exchanges," Slutzkin said during the interview. However, others warn of the possibility that certain decentralized trading activities, where a controlling entity can be identified, could still be captured under the rules, too.

"There are many benefits of regulating the crypto sector, whether that's the application of FinProm rules providing further protection to consumers, or growing trust leading to deeper liquidity pools through increased institutional participation," the Gemini spokesperson said. "However, some argue that there are disadvantages to regulating DeFi, not least, the potential stifling of innovation, and the compliance burdens that will be introduced into this space. There are also clear privacy concerns which could drive out/exclude users with such concerns. What we require instead, are clear rules on what falls in and out of scope of the regulatory perimeter, by looking at who exercises control, what economic functions are being performed, where those boundaries lie and how certain risks may be addressed."

Crypto ETNs

Amid growing talk of convergence between tradfi and crypto, one restriction the FCA did lift recently was a ban on crypto exchange-traded notes for UK retail users. BlackRock, 21Shares, Bitwise, and WisdomTree were among the first to list Bitcoin or Ethereum investment products on the London Stock Exchange on Monday as a result, though the broader crypto asset derivatives ban for retail remains in place.

Gemini was one of the first to push for crypto exchange-traded funds in the U.S., though ultimately it was not among the initial issuers that debuted in January 2024. However, entering the UK crypto ETN market does not seem entirely out of the question.

"I don't think there's anything that's not on the table at the moment," Slutzkin said. "We don't have the ability right now to offer it in the UK, so maybe down the line we will look at the licensing required to actually do that. But yeah, right now, no real time frame that I can give for that, but it's definitely something that's worth being looked at."

No market warning signs picked up internally

Amid growing fear in the crypto market following the historic liquidation event and crash of Oct. 10, with many wondering if the traditional four-year cycle is again playing out, Gemini has not picked up on any metrics internally that say the market is "on the precipice, or anything like that," according to Slutzkin.

"It does feel like things have moved on already; it hasn't caused too much panic in the market," he said. "There's nothing really that I'm aware of or know that this is the attitude, and this is what we are worried about."