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As U.K. banks tighten their lending standards, Gemini feels the pressure

From major banks blocking digital currency exchanges like Binance to states in the United States cracking down on BlockFi to the E.U. enacting rules prohibiting anonymous transfers of digital currency assets, the blows keep coming for a sector that has prided itself on breaking the law.

When Monzo, one of the U.K.’s top challenger banks, blocked transfers to Gemini at the beginning of August, the exchange owned by Tyler and Cameron Winklevoss felt the squeeze. Following that, several other British banks followed likewise. The action comes after a slew of U.K. institutions have blocked digital currency trades in recent months.

The regulatory net is closing in on Gemini.

The Winklevoss twins have always positioned themselves as rule-followers, and they’ve made an effort to do KYC checks on clients and stay away from the shadiest elements of the digital currency sector.

Even Gemini, though, will be caught in the net as authorities and financial institutions grapple with the 1.6 trillion-dollar digital currency market, which SEC head Gary Gensler recently referred to as the “Wild West.” As a result, banks and authorities have tarnished Gemini’s reputation as a legitimate, regulated crypto-asset firm, concluding that it is not safe for their customers.

Despite their best attempts to project a spotless image, the Winklevoss twins have continued to pass off BTC as Bitcoin. In addition, the duo has openly pushed BTC as Bitcoin and second-rate blockchains and tokens such as Ethereum as viable alternatives to the original Bitcoin protocol.

Who are Tyler and Cameron Winklevoss?

In popular culture, the Winklevoss twins are renowned for suing Facebook creator Mark Zuckerberg for allegedly stealing their concept for the social networking site. However, after learning about Bitcoin while on vacation in Ibiza in 2012, they obtained a $65 million-plus Facebook shares settlement and became significant BTC investors.

Ben Mezrich’s book “Bitcoin Billionaires,” tells how the twins became billionaires through BTC speculation. They also founded the Gemini exchange and released the Gemini dollar, a stablecoin.

Despite early recognition that Bitcoin was electronic cash that would disrupt businesses worldwide, as recounted in Mezrich’s book, the twins chose to support the BTC system and embrace the digital gold/store of value story.

It’s unclear if they still have any BTC, BCH, or BSV tokens. They are, however, adamant about a BTC price of $500k by 2030. Thus it is clear which vision of Bitcoin they support.

Dr. Wright predicted this a long time ago.

Dr. Craig Wright foresaw these efforts against Gemini and other exchanges years ago. In his Theory of Bitcoin series with Ryan X. Charles, he went into the legal issues of the digital currency sector in-depth, explaining why Bitcoin, as it was intended, is lawful, but most other digital currencies run afoul of securities regulations.

We can expect that the suffering for exchanges and other firms who deal in and promote these so-called assets will only get worse based on the legal facts Dr. Wright has given. As new exchanges like Fabriik compete with the old guard, they’ll find it increasingly difficult to stay relevant in the new, regulated world that’s rapidly becoming a reality.

Will the Winklevoss twins make a change?

Gemini is one of the most well-known brands in the digital currency sector, but it is conspicuously absent from the COPA membership list. This organization has filed a lawsuit against Dr. Wright to prohibit him from exercising his intellectual property rights, namely the Bitcoin whitepaper.

Will the Gemini twins do a U-turn and accept BSV as Bitcoin? So far, the Gemini twins have avoided the hardline BTC maximalist cult, so there is yet hope for them. Keep an eye out for updates.

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