JPMorgan Chase has decided to suspend the process of reconnecting the cryptocurrency exchange Gemini as a corporate client. The reason for this decision stems from public remarks made by the platform’s co-founder Tyler Winklevoss regarding the bank’s policies towards fintech companies and access to banking data.
This is reported by Business • Media
Conflict Between Gemini and JPMorgan Escalates
The disagreements between the bank and the cryptocurrency exchange have been ongoing for several years. According to Tyler Winklevoss, following his criticism of JPMorgan regarding increased fees for fintech companies accessing user data, the bank halted the process of bringing Gemini back into its client roster. In the past, Gemini had been a client of JPMorgan, but the collaboration was terminated during the so-called “Operation Choke Point 2.0,” when several American banks restricted their dealings with cryptocurrency companies.
Winklevoss sharply criticized JPMorgan’s initiative to impose fees for fintech companies accessing customers’ personal banking data. In his view, such changes create significant financial barriers for innovative companies seeking to enable consumers to integrate their bank accounts with crypto services, particularly for purchasing digital assets through Gemini.
“Sorry, Jamie Dimon [CEO of JPMorgan Chase], we will not remain silent. We will continue to expose this anti-competitive, parasitic behavior and the immoral attempt to destroy fintech and crypto companies. We will never stop fighting for justice!” — Winklevoss wrote.
Bank’s Position and Future Developments
In response, representatives of JPMorgan explained that the new fees are being introduced to enhance the security of customer data. According to them, “data processing intermediaries gain access to bank accounts through the bank’s secure infrastructure, but do not always act responsibly. The volume of requests reaches two billion each month, with over 90% unrelated to actual fintech services. The introduction of the new fee structure will allow data to be provided only upon direct requests from clients.”
Despite the tense relationship, JPMorgan did not comment on the details of its interaction with Gemini. It is known that even before the establishment of a more favorable U.S. policy towards cryptocurrencies, the bank advised Gemini to seek another financial partner due to the unprofitability of servicing them. At the same time, despite the public criticism of cryptocurrencies by JPMorgan CEO Jamie Dimon, the bank is developing its own blockchain products.
Gemini, founded by Tyler and Cameron Winklevoss in 2015, recently submitted a confidential IPO application after settling a lawsuit with the U.S. Commodity Futures Trading Commission and paying $5 million.