Cryptocurrency exchange Gemini said the company still maintains its relationship with Wall Street bank JPMorgan Chase.
Gemini’s rebuttal comes after reports stated that the American financial institution severed ties with the crypto firm. The news first reported by Coindesk on March 8 cited anonymous sources, which revealed that the bank was ending its relationship with the crypto exchange.
JPMorgan took Geminin and Coinbase as their first crypto clients in 2020. Jamie Dimon, CEO and chairman of JPMorgan, has been known to criticize bitcoin (BTC) and once threatened to fire employees who engaged in BTC trading. In an interview in January 2023, Dimon doubled down on his bitcoin criticism, calling the crypto asset a “hyped-up fraud.”
Meanwhile, US crypto companies risk losing banking relationships with lenders in the country due to the increased regulatory scrutiny. Unfavorable cryptocurrency policies in the country have seen firms either altogether leaving the US or geofencing customers by creating a separate entity to cater to American customers. Binance is one such crypto exchange that has adopted this measure.
Furthermore, the inability to access banking facilities can lead to crypto firms creating their banks. However, such efforts have not proved successful yet. Custodia Bank saw its application to join the Federal Reserve System denied. Crypto exchange Kraken, on the other hand, is looking to launch its bank despite regulatory hassle with US authorities.