Buyers Circle Winklevoss-Backed Crypto Exchange Gemini Amid Regulatory Shake-Up

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Potential buyers are circling Winklevoss-backed crypto exchange GeminiFinance

What to know:

  • Potential buyers are exploring acquiring Gemini’s shuttered European and U.K. operations to secure regulatory licenses, rather than pursuing a full takeover of the exchange.
  • The move follows Gemini’s 25% workforce cut, exit from multiple international markets, and leadership shake-up, including the departure of three top executives.
  • Shares have plunged to around $4.36 from a $28 IPO price, reflecting a sharp loss of investor confidence amid broader crypto market weakness and company-specific challenges.

Someone familiar with the situation says potential buyers are considering acquiring parts of Gemini Space Station (GEMI), the cryptocurrency exchange founded by the Winklevoss twins.

In February, the New York company announced it would reduce its worldwide staff by 25% and close offices in the U.K., the EU, and Australia. It will continue operating only in the U.S. and Singapore.

Several potential buyers are interested in purchasing the company’s closed European and U.K. businesses specifically to gain the necessary regulatory approvals in those regions. They aren’t looking to buy the entire company, which is listed on the Nasdaq, according to a source familiar with the situation who requested anonymity due to the confidential nature of the discussions.

A company spokesperson declined to comment.

Gemini is more than just a place to buy and sell crypto. It offers a complete range of services for institutions and individuals, including secure storage, staking options to earn rewards, and tools for easily converting traditional money into cryptocurrency and vice versa. Gemini has also developed its own systems for handling trades and settlements, making it a one-stop shop for all things crypto. Plus, they offer a credit card that lets you earn cryptocurrency with your everyday purchases.

Regulatory approvals

Gemini provided its services in Europe by complying with individual country regulations and also obtaining a MiCA license, which allowed it to operate throughout the entire EU market.

This exchange is authorized and regulated in the U.K. by the Financial Conduct Authority (FCA). It’s registered as an electronic money institution, which lets it offer specific payment services, and is also listed on the FCA’s register of companies approved to work with cryptoassets.

From my perspective, acquiring Gemini’s operations—even though they’ve now closed—is a smart move because getting regulatory approvals in Europe and the U.K. is a notoriously lengthy process that can take years. It essentially bypasses that hurdle.

Europe’s MiCA rules don’t allow a crypto license to be automatically transferred when a company is bought. If a licensed firm is taken over, it’s considered a “change of control,” meaning regulators will review the deal to make sure everything is still in order, rather than just approving the transfer of the license.

Companies buying another business usually have to inform and often get approval from the relevant government authority before the deal is finalized. This means the new owner will face similar checks and oversight as if they were a brand new applicant.

The Financial Conduct Authority handles crypto firm acquisitions in a similar way. When one crypto company buys another that’s registered with the FCA, the existing registration isn’t simply moved over. Instead, the purchase is seen as a change in ownership, requiring a review rather than a straightforward transfer of authorization.

Volatile run

Gemini’s shares have been volatile since its September 2025 IPO.

The company’s stock began trading at $28 per share during its initial public offering (IPO). It quickly rose above $37 before finishing its first day of trading around $32. The stock’s price increased by over 30% during the day, indicating significant interest from investors.

However, that early momentum quickly unraveled.

Since reaching its peak after the initial public offering, the stock price has fallen dramatically and is now trading around $4.36 – over 80% lower than its IPO price. This sharp decline reflects a significant loss of investor trust, influenced by both the overall downturn in the cryptocurrency market and challenges specific to the company.

Senior departures

In a February report, the company announced that its chief operating officer, chief financial officer, and chief legal officer had all left the organization.

I was pretty surprised to see Gemini’s COO, Marshall Beard, CFO Dan Chen, and CLO Tyler Meade all step down, and it happened right away. The filing said Beard also left the board, but they made it clear his departure wasn’t due to any issues with how Gemini is run. It seems like a clean break, which is… interesting, to say the least.

These resignations followed closely after Gemini’s announcement that it was closing its cryptocurrency exchange services in the U.K., the European Union, and Australia.

Following the recent announcement, Gemini’s stock price increased by 11%. Data from FactSet indicates that 15% of the company’s shares are currently being shorted.

UPDATE (April. 9, 6.20 pm UTC): Updates story with the share price move and short interest data.

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2026-04-09 21:06