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JP Morgan Ends Banking Relationship with Gemini Crypto Exchange

JP Morgan is ending its banking relationship with crypto exchange Gemini, according to a report by Coindesk. The banking giant first took on both Gemini and Coinbase as customers in 2020, with Coinbase continuing to work with JP Morgan.

JP Morgan building
JP Morgan building

Regulatory Concerns Behind JP Morgan's Decision

The reason behind severing the relationship is due to regulatory concerns by the US Securities and Exchange Commission (SEC) regarding Gemini. No official comment regarding the decision has been issued.

Regulatory Clarity in the Digital Asset Sector

The year has been filled with headlines about regulatory concerns in the digital asset sector, with US regulators seeking regulatory clarity through enforcement. Major players have backed out of the space due to the uncertainty.

JPMorgan Continues Relationship with Coinbase

JP Morgan and Coinbase were taken on as customers in 2020; only Coinbase has commented on the reports, stating it still maintains a banking relationship with JP Morgan. This marks an ongoing trend of crypto companies having greater difficulty accessing banking services.

Gemini Has Other Banking Options

According to the exchange's website, Gemini still has other banking options available, as it maintains a relationship with State Street banks. The bank has yet to comment on whether it will alter the status of the company's banking relationship based on the information.