Crypto exchange Gemini has denied rumors that it has cut ties with American bank JPMorgan. The Winklevoss brothers’ firm disclosed this in a tweet today, countering the story, which was already gaining momentum.
“Despite reporting to the contrary, Gemini’s banking relationship remains intact with JPMorgan,” the firm tweeted on its official Twitter handle.
Gemini Trashes Rumors of a Tie Break
Gemini was quick to calm the nerves of its customers with a counter tweet. The relationship between Cameron and Tyler Winklevoss-owned exchange and banking giant JPMorgan has been in place since 2020.
There have been no reports of friction between the two firms up until the debunked rumors arose today. JPMorgan has invested heavily in cryptocurrencies and even has several ties to other crypto exchanges like Coinbase.
Even though JPMorgan’s Chief Executive Officer, Jamie Dimon, is not a huge supporter of Bitcoin, the firm has continued its adventure into the crypto space. The U.S. banking giant even registered a trademark for cryptocurrency wallets.
Concerns Over Crypto Crackdown Continue
Sources debunked by Gemini cited the recent crackdown by regulators on the crypto industry as a pain point for JPMorgan. Despite the fact that the report has been debunked, the increased scrutiny of crypto firms has put investors on edge.
The Securities and Exchange Commission (SEC) and its investors have sued Gemini twice in the last three months. In December, investors sued it for selling an unregistered interest product, Gemini Trust Earn. The SEC then sued the crypto exchange for breaking securities laws.
Nationwide Building Society and HSBC in the United Kingdom have also imposed some restrictions on card payments involving cryptocurrencies. If the lack of regulatory clarity around the crypto space continues, more companies will limit their contact with the sector to protect customers from spillovers from regulatory uproar.
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