Gemini co-founders Cameron and Tyler Winklevoss are reportedly contemplating opening a second headquarters in the United Kingdom. The move comes as the company looks to expand its business footprint outside of the United States due to increased regulatory scrutiny. The founders recently met with officials from the Financial Conduct Authority (FCA) and Bank of England as part of their plan to expand the company’s operations.
Regulatory Challenges in the US
Several US-based exchanges have expressed concerns about the regulatory environment in the US. Regulators have doubled their enforcement actions against crypto firms in response to a series of industry collapses last year. Gemini, which survived 2020, is now facing legal challenges from the US Securities and Exchange Commission (SEC). The SEC has alleged that Gemini and Genesis failed to register their Earn product as securities, which ultimately led to the project being scrapped.
Reasons for Considering UK Location
Cameron Winklevoss explained that the company is considering a UK location due to the challenges it is facing in the US. There are many headwinds in the US, and it is difficult to get anything done there. In order to invest in hiring and continue building the business, they need to look elsewhere. Winklevoss praised the UK’s crypto and talent markets and projected that the company might have more employees outside the US in the future.
However, Winklevoss noted that the exchange does not plan to leave the US and intends to continue fighting for a foothold there. The company already operates in the UK under an FCA license and regards it as a second home. Nevertheless, setting up in the UK may not be without opposition. A recent report by the Treasury Select Committee of the British Parliament recommended that crypto should be regulated like gambling, raising questions about how much friendlier the UK will be towards the growing industry.
The Winklevoss brothers are considering opening a second headquarters for Gemini in the UK as they face increased regulatory scrutiny in the US. While they do not plan to leave the US, they recognize the need to explore other options to continue building their business. The UK’s crypto and talent markets are attractive to them, although they may face opposition from regulators in the UK as well. Gemini already operates in the UK and regards it as a second home.