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JPMorgan started working with the cryptocurrency exchanges Coinbase and Gemini

May 12, 2020

Allegedly JPMorgan Chase, the largest bank in the United States rented cryptocurrency exchanges Coinbase and Gemini as customers.

A Wall Street Journal (WSJ) report cited anonymous sources today that appear to be familiar with the matter They claimed this was the first time the bank giant served customers in the crypto industry.

Both accounts were accepted in April, and now put into operationthey informed WSJ.

JPMorgan started working with the cryptocurrency exchanges Coinbase and GeminiJPMorgan started working with the cryptocurrency exchanges Coinbase and Gemini

JPMorgan Chase does not process Bitcoin (BTC) transactions or other cryptocurrencies on behalf of the exchanges, however offers cash settlement services and manages dollar transactions for your customers based in the USA. The bank is supposed to be processes all transfers and deposits and withdrawals in dollars through the Automated clearing house network.

Coinbase and Gemini are particularly regulated

Sources claimed that the two exchanges has undergone a rigorous review processnoting the long reluctance of large banks to build relationships with crypto companies.

Coinbase and Gemini were founded as fully regulated entities. The latter, owned by the Winklevoss twins, had already received criticism from radical defenders of the crypto community for his controversial 2019 advertising campaign “Cryptocurrencies need rules.”

In April of this year Gemini received a new safety assessment, a Service Organization Control (SOC) Type 1 certification 1, after a review by one of the big companies Accounting, Deloitte.

For its part, Coinbase Custody had previously requested an assessment of SOC 1 Type 2 and SOC 2 Type 2 by the large consulting firm Grant Thornton.

Coinbase is registered as a money service provider in the Financial Crimes Enforcement Network and Twins received a certificate of trust from the New York Treasury Department (NYDFS) in 2015.

Both pockets too have met the requirements work under the NYLFS BitLicense structure and are licensed money transmitters in various states.

Jamie Dimon has strongly criticized Bitcoin

For those of you who have followed Jamie Dimon, President and CEO of JPMorgan, towards the crypto world in recent years, the news is that the bank has made alliances with these exchanges You must have been very surprised.

Dimon said that in his sharpest statements Bitcoin is “worse than tulip bulbs”and predicts that currency speculation “will not end well”.

The bank, however was positive about the potential of blockchain and announced the future introduction of its own cryptocurrency “JPM Coin” in mid-February 2019.

The bank recently considered merging its internal blockchain unit “Quorum” – the foundation of its interbank information network – with the well-known Ethereum-based company ConsenSys.

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