JPMorgan allegedly launches "Operation Chokepoint 3.0," targeting crypto with high fees.

JPMorgan allegedly launches "Operation Chokepoint 3.0," targeting crypto with high fees.

In a recent development, JPMorgan Chase has reportedly initiated "Operation Chokepoint 3.0," a controversial move that aims to charge fintech companies for accessing customer bank data. This new policy has sparked criticism from the crypto industry, with prominent figures like Tyler Winklevoss of Gemini expressing concern over the potential impact on innovation and consumer rights.

According to Winklevoss, the new policy could "bankrupt fintechs" that facilitate consumer access to cryptocurrency exchanges. He accuses JPMorgan of anti-competitive behavior and violating open banking principles. Winklevoss has publicly criticized JPMorgan CEO Jamie Dimon, stating that the bank is attempting to "take away your right to access your banking data for free through third-party fintechs like @Plaid" [1].

Coinbase, another prominent crypto exchange, has also been vocal about the issue. The company has accused the Federal Deposit Insurance Corporation (FDIC) of stonewalling court orders and obstructing efforts to expose documents tied to the alleged "Operation Chokepoint 2.0." Coinbase is pushing for testimony and the full release of withheld FOIA documents, claiming that the FDIC has applied broad exemptions to withhold information [2].

The new policy from JPMorgan is part of a broader trend in the banking industry to charge for data access, which could have significant implications for the crypto sector. While some view this as a step towards more controlled and secure financial interactions, others see it as a barrier to innovation and consumer choice. The industry is closely watching how this policy will evolve and its potential impact on the growth and accessibility of cryptocurrency exchanges.

References:
[1] https://timesofindia.indiatimes.com/technology/social/we-will-never-stop-fighting-for-billionaire-tyler-winklevoss-to-jp-morgan-ceo-jamie-dimon-for-rejecting-his-crypto-exchange/articleshow/122920133.cms
[2] https://cryptonews.com/news/coinbase-accuses-fdic-of-hiding-operation-chokepoint-2-0-files/