Another bad news for the struggling Bitcoin exchange Gemini came from the banking giant JPMorgan. JPMorgan is severing ties with twins Cameron and Tyler Winklevoss from crypto exchange Gemini, sources reported. Meanwhile, Coinbase has announced that its banking relationship with JPMorgan is intact.
JPMorgan part ways with Bitcoin exchange!
US banking giant JPMorgan (JPM) is ending its banking relationship with Bitcoin exchange Gemini, owned by Cameron and Tyler Winklevoss, according to sources. Earlier in 2020, JPMorgan acquired Gemini and US-listed exchange Coinbase as clients, the Wall Street Journal reported.
A spokesperson for the San Francisco-based exchange confirmed that Coinbase’s banking relationship with JPMorgan remains intact. cryptocoin.comAs you follow, the crypto industry, rocked by numerous scandals and crashes over the past year, is now facing increased regulatory scrutiny and greater challenges in accessing banking services.
JPMorgan declined to comment on the matter. Gemini, a trust company regulated by the New York State Department of Financial Services, has yet to comment on the matter. Gemini’s loss of a major banking partner probably doesn’t leave him figuratively in the cold. According to the exchange’s website, the company has relationships with other banks, including State Street.
Under regulatory pressure, Coinbase and JP Morgan relationship is solid!
There is no increasing regulatory scrutiny between Coinbase and one of its banking partners, JPMorgan Chase. Coinbase pointed to the website that lists its banking partners when asked for comment, while JP Morgan declined to comment.
The industry is on high alert as the Securities and Exchange Commission has cracked down on a number of crypto companies, including a recent deal with Kraken over allegations of its staking program. As you know, Paxos has been ordered by the New York Department of Financial Services to cease issuing BUSD. As it turns out, regulatory actions are causing banks to stop working with crypto companies and pushing them to the edge of finance.
In recent weeks, SEC Chairman Gary Gensler has been speechless after the Kraken sanction. “Whether you’re lending, earning, calling it a yield, or offering what’s called an annual percentage return, the APY should really make everyone in this market aware,” Gensler told CNBC.
Earlier in January, the Federal Reserve, the Office of the Currency Supervisory, and the Federal Deposit Insurance Corp. issued a joint statement reminding banks of their obligations to safety and soundness and outlining the risks they see in the cryptocurrency industry. While the statement states that banks are not prohibited from doing business with companies operating within the law, regulators have raised a few red flags for those hoping to dive deeper into crypto-related activities.
