Crypto Will Meet Traditional Finance As Regulation Grows: JP Morgan
JP Morgan, one of the largest banks in the US, did not avoid expressing its belief in the crypto sector despite the fluctuations affecting the market. As highlighted in its latest Global Markets Strategy report, JP Morgan expects the crypto industry to experience significant changes in early 2023. Along with more regulations, JP Morgan believes the use of self-contained hardware bags can help people feel safer. their crypto currency, thereby bringing more investment.
JP Morgan predicted that an important part of global crypto regulation, will be motivated by the rules governing the traditional financial sector (TradeFi) that exist, such as the general requirements of KYC and the maintenance of audits of exchanges, stablecoin issuers, and lenders and custodians.
Lenders are betting that these rules will eventually lead to a merger between crypto and TradFi.
At the moment, there are several issues that need to be resolved in order to protect the crypto industry from as many risks as possible.
Risks related to the hacking of smart contracts and the unfairness of DeFi cooperation with TradeFi have been reported among the critical issues in the crypto sector.
JP Morgan, which claims to serve more than 135,000 clients in more than 180 countries, was founded in 2000. After nearly 23 years in business, the lender is now looking to establish itself in the new Web3 sector.
In recent months, JP Morgan has taken several decisions to support the adoption of crypto. The largest bank in the US is expected to launch a crypto wallet service in the near future.
The bank’s predictions are in line with other research reports that also say that regulations surrounding the crypto sector will further wrest BTC from fraudsters using it as a tool to process financial exploitation.
In a recent report, cybersecurity firm Kaspersky said that upcoming rules and regulations regarding crypto transactions around the world, will make Bitcoin more attractive for criminals to use as a payment gateway.
Nations around the world are coming together to give the crypto industry legal oversight. Last month, the European Parliament’s Committee on Economic and Financial Affairs (ECON) approved the MiCA law, which focuses mainly on consumer protection and the prevention of market manipulation and financial crimes in the crypto sector.
The Organization for Economic Cooperation and Development, or OECD, plans to present a tax framework surrounding the crypto sector to members of the G20 nations in the coming days.
Next month, India will take over the presidency of the G20 group and will continue to preside over the international union for the next one year. Among the priorities, India is looking to collaborate with 19 other G20 member countries in creating a framework on cryptocurrency, which will work at the international level.