JPMorgan’s Decision to End Relationship with Gemini Highlights Challenges for Crypto Industry
In a surprising move, JPMorgan Chase, one of the largest banks in the United States, has decided to end its banking relationship with Gemini, a cryptocurrency exchange owned by the Winklevoss twins, according to WSJ. The decision comes as a shock to many in the industry, as JPMorgan had previously taken on both Gemini and U.S.-listed exchange Coinbase as customers back in early 2020.
While Coinbase’s banking relationship with JPMorgan remains intact, a spokesperson for the San Francisco-based exchange confirmed, it appears that Gemini is now on the lookout for new banking partners. Gemini, a trust company regulated by the New York State Department of Financial Services, did not initially respond to requests for comment. However, in a tweet sent after the publication of the news, the exchange wrote, “Despite reporting to the contrary, Gemini’s banking relationship remains intact with JPMorgan.”
Despite reporting to the contrary, Gemini’s banking relationship remains intact with JPMorgan.
— Gemini (@Gemini) March 8, 2023
The loss of a major banking partner is a significant blow to any company, but it is unlikely that Gemini will be left out in the cold. The exchange has relationships with other banks, including State Street, according to its website. However, this move does highlight the challenges that the cryptocurrency industry faces when it comes to accessing traditional banking services.
Last year, the industry was rocked by numerous scandals and collapses, and now faces heightened regulatory scrutiny. Some banks are reluctant to take on cryptocurrency companies as customers due to concerns over money laundering and other illegal activities. This has made it more difficult for many exchanges to operate and grow.
JPMorgan declined to comment on the decision, leaving many in the industry wondering why the bank decided to end its relationship with Gemini. However, it is clear that the cryptocurrency industry still has a long way to go when it comes to gaining acceptance and support from traditional financial institutions.
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