Key Notes
- The dispute follows a Bloomberg report revealing JPMorgan’s decision to charge fintech firms for accessing customer banking data.
- Cameron Winklevoss warned the policy could “bankrupt fintechs” that support crypto transactions.
- The crypto exchange and the banking giant have had a tense relationship since at least 2023.
Tyler Winklevoss, the co-founder of crypto exchange Gemini, has recently slammed banking giant JPMorgan for preventing the crypto exchange from the onboarding process after his public criticism of the bank’s new data policy.
In his post on July 25, Winklevoss called JPMorgan’s alleged retaliation anti-competitive behavior, and something that could harm crypto and fintech firms. This latest dispute arises from a recent Bloomberg report. That reveals that JPMorgan began charging financial technology firms for access to customer banking data.
Commenting on this, Gemini co-founder Cameron Winklevoss warned that it could “bankrupt fintechs” that enable crypto purchases. Commenting on similar lines, his twin brother, Tyler Winklevoss, wrote:
“My tweet from last week struck a nerve. This week, JPMorgan told us that because of it, they were pausing their re-onboarding of Gemini as a customer after they off-boarded us during Operation ChokePoint 2.0.”
Winklevoss Accuses JPMorgan of Limiting FinTech Access
Winklevoss accused JPMorgan of attempting to limit consumers’ ability to access their banking data through third-party platforms freely. One of them is Plaid, a service that connects financial accounts to various apps and online services. While addressing the JPMorgan chief, he wrote:
“Sorry Jamie Dimon, we’re not going to stay silent. We will continue to call out this anti-competitive, rent-seeking behavior and immoral attempt to bankrupt fintech and crypto companies. We will never stop fighting for what is right!”
Gemini and JPMorgan have had a strained relationship for years. In 2023, during the Biden administration, reports surfaced that the bank had asked Gemini to seek a new banking partner, citing concerns about profitability. However, the crypto exchange later denied the claims, stating that their relationship with the banking partner remains intact.
This latest accusation against JPMorgan comes a month after the crypto exchange filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). Details such as the number of shares to be offered and the proposed price range have not yet been disclosed.
With the improving regulatory landscape for digital assets, JPMorgan is making some bold moves. Last week, the banking giant said that it’s exploring the facility to offer loans against crypto collateral because of strong client demand.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
