JPMorgan, the renowned banking behemoth, has decided to call it quits with the cryptocurrency exchange Gemini, owned by the Winklevoss twins, Cameron and Tyler.
JPMorgan is reportedly discontinuing its banking partnership with cryptocurrency exchange Gemini according to a report published on CoinDesk on Wednesday and citing an unnamed source.
JPMorgan had previously welcomed Gemini and Coinbase, a U.S.-listed exchange, as its customers in early 2020, according to the Wall Street Journal. Before that, only a handful of cryptocurrency-friendly banks, like Silvergate, were serving exchanges and other digital asset firms. However, Silvergate recently lost investors’ trust after a delay in filing its annual 10-K report, which put the company under scrutiny.
The cryptocurrency industry, which was already struggling with numerous scandals and collapses, now faces heightened regulatory scrutiny and greater difficulty in accessing banking services.
It is worth noting that Gemini is a regulated trust company under the New York State Department of Financial Services. Losing one major banking partner does not leave Gemini out in the figurative cold. The exchange still has relationships with other banks, including State Street, according to its website.
The end of JPMorgan’s banking relationship with Gemini is not a death sentence for the exchange. Instead, it serves as a reminder that the cryptocurrency sector needs to keep forging solid connections with traditional financial institutions.