JPMorgan Halts Gemini Re-Onboarding After Tyler Winklevoss Criticism
- JPMorgan reportedly paused Gemini’s re-onboarding after recent public criticism.
- Gemini previously faced offboarding during regulatory pressure on crypto businesses.
- Friction grows as crypto firms challenge traditional banks’ control over data.
JPMorgan Chase was said to have suspended the re-onboarding of Gemini, the crypto exchange that was co-founded by Tyler Winklevoss. This was after Winklevoss publicly criticized the banking giant’s new rule that forces fintech firms to pay to utilize the banking data of their customers.
That suspension is just another chapter in the long-running rivalry between Gemini and one of the largest banking institutions in the United States.
The dispute became more intense after Winklevoss became concerned with the implications of JPMorgan’s policy shift, alleging that it could pose operational hurdles to fintech platforms, particularly those that are involved in digital asset transactions.
Such platforms often enjoy unfettered data flow to banks to facilitate the transfer of money to crypto markets. The move comes following a history of strains between the two sides.
JPMorgan previously closed its erstwhile business with Gemini amidst profitability issues. This latest suspension of onboarding appears to reflect differences in policy and deeper strategic and ideological differences between crypto-native firms and incumbent banks.
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JPMorgan Halts Gemini Amid Crypto Tensions
This slowdown in Gemini’s onboarding process isn’t a one-time decision. It underscores a broader trend in the way that traditional financial institutions have approached crypto exchanges in recent years.
In what became unofficially known as “Operation Choke Point 2.0,” certain banks reportedly retreated from crypto-related firms due to ambiguous regulations and perceived dangers.
Despite having tried to position Gemini as a compliant and regulated crypto exchange, its relationship with JPMorgan remained strained.
This latest news further points to the problem that crypto firms are having in interoperating with the traditional banking system, particularly where they are in the public eye.
The ramifications of JPMorgan’s revised policy go further than Gemini and perhaps touch a vast universe of fintechs that depend on open data sources to function day to day. These added costs could strain thin platforms or cause them to look for other, more tolerant parties.
Gemini Eyes IPO Amid Regulatory Milestones
Despite these challenges, Gemini is moving forward with its plans. The company filed in secret for an initial public offering during the first half of this year, individuals familiar with the process explained.
This follows having eliminated significant legal hurdles, including the closure of a Securities and Exchange Commission investigation and a $5 million settlement with the Commodity Futures Trading Commission.
In preparation for a potential public debut, Gemini’s run-ins with JPMorgan are reflective of the complex dynamics found between newer digital financial firms and the old-line banking establishment.
