Cryptocurrency exchange Gemini has unveiled plans for the establishment of a dedicated Australian entity. This signifies a strategic effort to establish a footprint in the Asia-Pacific region in a time of elevated competition and demand.
Localizing to Compete
Previously, Australian users of Gemini’s platform had access to its global operations without having any type of dedicated local infrastructure or formal registration in Australia. The formation of Gemini Intergalactic Australia will enable the firm to provide services tailored to Australian users and in compliance with Australian regulations.
This highlights a more pronounced trend common within the crypto space. Rather than operations being limited to major hubs, exchanges are starting to make the investment in local operations to demonstrate compliance and build trust with the local users and provide service to clients in a timely manner. Gemini’s head of APAC, Saad Ahmed, told Reuters that institutional demand from Australia is already present, and a more localized platform “makes sense” as usage grows.
Rising Adoption and Market opportunities
The timing of Gemini’s expansion is not accidental. According to data from the Australian Independent Reserve Cryptocurrency Index, crypto adoption in Australia has grown from 28% last year to 31% as of early 2025. That trend illustrates that consumer and institutional interest in digital assets is maturing. For Gemini, capturing a larger share of this uptake means contending with incumbents, local exchanges, and regulatory risk.
Regulatory Imperatives and Challenges
The plan hinges on registration with Australia’s financial intelligence authority, AUSTRAC, as a digital currency provider.
That step is nontrivial: exchanges must meet stringent anti-money laundering (AML) and counter-terrorist financing (CTF) requirements, know-your-customer (KYC) protocols, and ongoing reporting obligations. Getting local registration helps Gemini mitigate risks of regulatory crackdowns or compliance violations that have beset some global crypto firms in less regulated jurisdictions.
However, localizing operations brings added cost: legal teams, compliance infrastructure, audit functions, and tailored product development. For users, though, the benefit is clearer transparency and the possibility of smoother fiat onboarding and withdrawals under domestic rails.
Strategic Implications for the Crypto Industry
Gemini’s action could make the decentralization of the crypto exchange operational landscape a reality. As countries and states across the globe are reviewing regulation, the international and global exchanges that service these regions will increasingly have different arms, or twins, to be compliant with local regulation and diminish systemic risk.
For the new exchanges, this places the ‘bar higher,’ as in becoming a credible competitor means developing local entities and local-specific licensing, rather than cross-border servicing or other entities. For institutional investors and corporate clients, Gemini’s expansion may indicate increased legitimacy.
Risks and Warnings
The boldness of the move does not guarantee its success. Regulatory regimes could shift, particularly if governments decide to tighten restrictions on crypto trading, token issuance, or stablecoins. Competition in Australia is stiff: local exchanges have already entrenched networks and regulatory know-how.
Gemini must also ensure that its global and local arms operate in harmony: fragmenting liquidity, user experience, or risk oversight would erode user trust. If local users find limitations or higher fees compared to global users, Gemini must manage perception carefully.
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