Tensions between traditional finance and the crypto sector intensified this week as Gemini co-founder Tyler Winklevoss accused JPMorgan of halting its onboarding process for the exchange after criticism over the bank’s new data access fees. The move sheds light on the growing friction between fintech platforms and legacy financial institutions.
JPMorgan’s New Fintech Data Policy Under Scrutiny
JPMorgan Chase recently announced it would begin charging fees to third-party fintechs for access to customer banking data. The new structure targets platforms that rely on APIs to link user bank accounts with services like crypto trading, budgeting apps, or neobanks.
According to the bank, the policy aims to “curb misuse and protect consumers,” noting that nearly 2 billion monthly data requests are generated by third-party tools, many of which aren’t connected to genuine user activity.
The fee model is being viewed by some as a gatekeeping strategy that could hinder innovation and increase operational costs for smaller fintechs.
Winklevoss Responds: “Anti-Competitive and Harmful”
Tyler Winklevoss took to social media to condemn the decision, warning that it could “bankrupt fintechs that help link users to crypto platforms.” He argued that the move represents a form of “regulatory capture” that stifles innovation and unfairly benefits traditional banking giants at the expense of newer, disruptive players.
“This is bad for American consumers and bad for America,” Winklevoss stated, underscoring the broader implications of JPMorgan’s policy.
Gemini Allegedly Blocked by JPMorgan Again
Following his remarks, Winklevoss claimed that JPMorgan informed Gemini it was pausing its re-onboarding process, which had been underway after a prior offboarding during the controversial “Operation Choke Point 2.0” — a regulatory wave that cut off banking services to numerous crypto firms.
Though JPMorgan declined to comment on Gemini specifically, it defended the policy shift, emphasizing its duty to manage data security and prevent abuse of its systems.
Implications for Crypto-Banking Relations
This development signals a wider power struggle between fintechs and traditional banks, especially as decentralized finance continues to gain ground. If other major institutions follow JPMorgan’s lead, access to core banking infrastructure could become increasingly limited for crypto firms.
The debate over fair access to financial rails may define how open the future of banking truly is.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.