Finance & Economics

Crypto Exchange Gemini Denies J.P. Morgan Chase Ended Banking Partnership

Gemini cryptocurrency exchange has denied information about the termination of J.P. Morgan Chase’s interaction.

Crypto Exchange Gemini Denies J.P. Morgan Chase Ended Banking Partnership

Source: Pixabay.com

The denial of the termination of the banking relationship was published on Gemini’s Twitter page on March 8. Earlier in the day, the media, citing anonymous sources allegedly familiar with the situation inside the company, reported the termination of interaction with J.P. Morgan Chase.

The journalists, whose statements were refuted by Gemini, claimed that J.P. Morgan Chase is currently reducing the scale of partnerships due to the unfavorable situation in the crypto markets. Another lender, Silvergate Capital, warned partners that it does not have the previous opportunities to carry out activities related to the crypto industry.

Analysts say that it is currently difficult for crypto firms in the United States to establish cooperation with banks. The situation is compounded by the fact that regulators advise traditional financial institutions to exercise extreme caution when interacting with representatives of the crypto industry.

Silvergate Capital announced on March 1 to the Securities and Exchange Commission (SEC) about postponing the publication of the annual report because regulatory investigations are underway against the company. The outcome of these processes may affect the financial institution’s ability to continue as a going concern for twelve months after the release of the financial statements. The next day, four crypto-related firms, including Gemini, announced the completion of their partnership with Silvergate Capital.

Gemini announced on Twitter on March 2 that the company continues to maintain partnerships with several banks. The firm also noted that concerns related to Silvergate Capital are because regulatory investigations may have negative consequences for the ability to continue its previous activities.

As we have reported earlier, Genesis and Creditors Gemini Reach $100 Million Agreement.