JPMorgan Severs Ties With Crypto Exchange Gemini: Report
- According to Coindesk, JPMorgan is severing its financial ties with the cryptocurrency exchange Gemini.
- This regulatory scrutiny seems to have been the driving force behind the strained relationship with the banking giant.
A report from CoinDesk claims that banking giant JP Morgan, a key partner of the cryptocurrency exchange Gemini, has left. A person acquainted with the situation is cited in the report, but no additional information about the choice was given.
Early in 2020, according to the Wall Street Journal, JPMorgan signed up Gemini and U.S.-listed exchange Coinbase as clients. A representative for the San Francisco-based exchange verified that Coinbase’s banking relationship with JPMorgan is still active.
The US Securities and Exchange Commission had conducted some regulation examinations of Gemini (SEC). It appears that the regulatory worry that underlies the intense relationship is what has caused it to be so.
Since launching the Earn yield farming product with Genesis and Digital Currency Group, Gemini has experienced a string of misfortunes. The company has been reducing its workforce, so the lawsuits surrounding it are a hindrance.
The Gemini Earn Program, which is at the centre of the exchange’s most recent problems, has generated controversy. Users were unable to withdraw money from the platform after Genesis, a subsidiary of the Digital Currency Group (DCG) and a crucial partner for the program, ceased activities.
The story added that Gemini’s loss of a significant banking partner is probably not going to leave it out in the cold. The exchange’s website states that the business has connections with additional institutions, including State Street.
However, after the Coindesk story was published, Gemini denied the claim of losing JPMorgan as a banking partner via a tweet.
“Despite reporting to the contrary, Gemini’s banking relationship with JPMorgan remains intact.“
The confusion caused by both parties has left the users wondering which side to trust. Many users are not even concerned with the exchange’s banking relationships; rather, they are looking for explanations for their lost funds. Given Gemini’s current market reputation, the ball appears to be in Coindesk’s court
Many people who have their funds locked up in the exchange have come down to raising questions about Gemini’s lack of transparency and ineffective customer service.