The major Wall Street bank, JPMorgan, has stopped efforts to re-establish banking relations with Gemini, one of the largest cryptocurrency trading platforms in the US.
This decision was made in the context of increasing tensions over data access between large banks and fintech companies.
Gemini's Winklevoss Criticizes JPMorgan
On July 25, 2023, Tyler Winklevoss, co-founder of Gemini, revealed that JPMorgan notified the exchange that they would not continue the platform's re-integration plan.
This move occurred after Gemini was eliminated in a phase that cryptocurrency supporters call "Operation Chokepoint 2.0". At that time, some banks, under regulatory pressure, cut services to cryptocurrency companies, citing industry risks.
However, the recent pause seems related to another conflict – focusing on financial data rights.
Winklevoss spoke out about JPMorgan's efforts to charge fintech companies for accessing customer bank data. He argued that this effort aims to weaken startups that rely on this access to provide seamless financial services to users.
Last week, Winklevoss publicly criticized JPMorgan and other banks for attempting to impose fees on fintech companies connecting to user bank accounts through tools like Plaid.
These fintech tools allow users to access and share their bank data. They also enable customers to transfer money to cryptocurrency exchanges and related platforms.
"[JPMorgan] wants us to be silent while they quietly try to take YOUR free bank data access through third-party fintech companies," Winklevoss said.
According to him, JPMorgan's strategy is an effort to prevent user-friendly innovations in finance by blocking access to personal financial data.
Winklevoss suggested that his criticism might have prompted the bank's latest decision to cut off his exchange.
Despite the setback, Gemini's CEO emphasized that he would not give up defending their interests.
"Sorry Jamie Dimon, we will not be silent. We will continue to criticize unhealthy competitive behavior, profit-seeking, and unethical efforts to bankrupt fintech and cryptocurrency companies. We will never stop fighting for what is right," he declared.
JPMorgan's action has attracted community attention. Many see this as part of the ongoing struggle between traditional financial infrastructure and the future of open systems.
Lily Liu, President of Solana Foundation, emphasized her long-term belief in the persistence of open systems. She expressed confidence that these systems will ultimately prevail in the digital space.
"The 'market' 'user base' – whatever one wants to call it – of humans on the internet and their assets is larger than any company/country or feasible alliance of companies/countries could assemble," she said.
