The American bank JPMorgan cut ties with the cryptocurrency exchange Gemini, according to previously updated material in a Coindesk story. The bitcoin exchange quickly refuted the report, saying the arrangement was still in place.
Despite reporting to the contrary, Gemini's banking relationship remains intact with JPMorgan.
— Gemini (@Gemini) March 8, 2023
It is well known that JPMorgan only has two cryptocurrency clients, Coinbase and Gemini, which will began facilitating USD transactions for these two platforms in 2020. Representatives of Coinbase confirmed to CoinDesk that the partnership with JPMorgan was ongoing.
The suspicions started after Sam Bankman-Fried's FTX quickly collapsed, and numerous US financial agencies cautioned banks at the same time about the dangers of offering services to businesses exposed to the cryptocurrency industry.
In order to guarantee the complete recovery of depositors' funds, electronic-friendly banking information, Silvergate Bank, had to announce its closure and liquidate its assets.
Many Gemini consumers require this information to be explained amid the current market turmoil. The dispute with the Genesis loan platform, which this exchange is currently working to resolve, resulted in the retention of $850 million in customer deposits following Genesis and the blocking of withdrawals due to FTX participation.
The Securities and Exchange Commission is looking into transactions between Gemini and Genesis. The two allegedly promoted unregistered securities through the Gemini Earn program, according to the SEC.
In general, people who are confused and concerned about the market being closely supervised by legal authorities have been somewhat soothed by the swift rejection of Gemini's rumors.
The crypto market, however, continues to be uncertain and volatile. It is crucial to remember that the crypto industry is still developing and prone to quick changes. Users should thus keep up with any updates and modifications to legislation that may have an impact on their investments.
