JRNY Crypto
“As crypto matures, there are increasingly many companies that have perfectly robust risk management systems and do have an ability to comply with those laws, and they shouldn’t have trouble finding bank relationships,” ~ Brian Brooks
This statement made by the U.S. banking regulator and a former Coinbase chief legal officer is getting fulfilled with a lot of partnerships going on in the crypto world today. One of which happened today.
JP MORGAN will not directly handle BTC transactions on these exchanges, rather they get to provide Cash Management services and handle dollar transactions for the U.S based citizens. This would include deposits and withdrawals via wire transfer and Automated Clearing House (ACH).
Coinbase and Gemini exchange aren’t the first crypto customers that would be partnering with this bank. Tokensoft, a regulated transfer agent for security token service has had a functioning account with the said bank since 2017.
Another factor that might have helped the two exchanges get on board must have been the fact that they were all regulated in the US.
Gemini which is owned by the Winklevoss twins obtained a new Security Verification, a service Organization Control (SOC) 1 Type 1 certification after passing a review by Big Four accounting firm Deloitte.
Coinbase on the other hand had obtained both an SOC 1 Type 2 and SOC2 Type 1 certification after evaluation from the Major Accounting firm Grant Thornton.
Why is this a big deal? Well if you have been following the CEO of JP MORGAN Jamie Dimon, you would know that he’s no doubt one of those who criticize BTC and even called BTC Fraud at one point. This gives further proof that BTC and the Crypto space will soon have its place among different banks and other areas in our society. No doubt it’ll take time.
