Recent events surrounding JPMorgan and the cryptocurrency exchange Gemini have drawn significant attention in the industry. JPMorgan announced the suspension of customer onboarding from Gemini following accusations made by the exchange's co-founder.
Reasons for Suspension
JPMorgan has suspended the customer onboarding process with Gemini amidst criticism from co-founder Tyler Winklevoss, who accused the bank of "trying to kill fintech and crypto companies" in a social media post.
Relations with Fintech Companies
Winklevoss also alleged that the cancellation of Gemini's re-acceptance process was due to his previous warning that major banks were attempting to bypass the Open Banking Rule, drafted by the Consumer Financial Protection Bureau (CFPB), which takes effect at the end of 2024. This regulation allows consumers to freely share their banking data with third-party platforms.
Market Perspectives and Reactions
Some in the crypto industry view this development as a new example of "Operation Choke Point 2.0," suggesting that regulators are exerting indirect pressure on crypto companies to push them out of the financial system. However, JPMorgan has recently taken a more lenient approach to cryptocurrencies, exploring loan products collateralized by crypto assets, despite CEO Jamie Dimon's previous statements labeling Bitcoin as a "fraud."
The situation between JPMorgan and Gemini highlights the ongoing friction between traditional financial institutions and the cryptocurrency industry. As new regulations emerge, fears and suspicions regarding the intentions of major banks continue to grow.
