IMG-LOGO

JPMorgan: Global Regulation Urgently Needed for Banks to Help Clients Invest in Crypto

News Feed - 2022-02-17 10:02:27

JPMorgan: Global Regulation Urgently Needed for Banks to Help Clients Invest in Crypto


A globally consistent crypto regulatory framework is urgently needed to allow banks to handle crypto assets on behalf of large customers, said a JPMorgan executive. “We need a globally consistent regulatory framework. It’s important that we get to a solution as quickly as possible.” Global Regulatory Framework Urgently Needed to Allow Banks to Offer Crypto Exposure to Clients, Says JPMorgan


Debbie Toennies, managing director and head of Regulatory Affairs at global investment bank JPMorgan Chase & Co., talked about global cryptocurrency regulation applicable to banks Tuesday at an event held by the International Swaps and Derivatives Association.


The JPMorgan executive said that new rules are urgently needed to give banks certainty in handling crypto assets on behalf of large customers who seek exposure in this asset class.


A growing number of large institutions, including hedge funds, are interested in investing and gaining exposure to the crypto asset class. According to Wells Fargo, cryptocurrency has entered the “hyper adoption phase.”


Noting that some very large players had asked JPMorgan to hedge their exposures to crypto assets, Toennies opined: I do think we need a globally consistent regulatory framework. It’s important that we get to a solution as quickly as possible.


Global banking regulators at the Basel Committee on Banking Supervision are discussing rules for banks to deal with crypto assets. In June last year, the Committee proposed dividing crypto assets into two groups and regulating them based on their market, liquidity, credit, and operational risks to banks. However, final rules are not expected until at least next year.


Toennies revealed that the global investment bank has been talking to different jurisdictions about “interim treatment” for crypto assets while waiting for the Basel Committee to establish applicable rules.


The JPMorgan head of Regulatory Affairs detailed: The real risk to all of our economies is that if we don’t get to a solution that allows banks to engage with our clients in a hedged way, this activity will go outside the regulatory perimeter, and I am concerned about financial stability. Tags in this story banks, banks crypto, banks crypto regulation, Banks crypto rules, banks cryptocurrencies, Cryptocurrency regulation, Cryptocurrency regulations, financial stability, jpmorgan, the Basel committee


Do you agree with JPMorgan about banks urgently needing clear rules on crypto? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Coinbase and 17 Other Crypto Firms Launch "Travel Rule Universal Solution Technology" REGULATION | 2 hours ago SEC Scrutinizing Crypto Exchange Binance US — Chair Gensler Stresses "Basic Investor Protection" REGULATION | 15 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMastercard Adds Crypto Consulting Service in Latest Effort to Boost Cryptocurrency Adoption Next articleHollywood Star Ryan Reynolds on Crypto: ‘It’s Emerging as a Huge Player’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItMcDonald’s Trademark Filings Hint at Fast Food Giant"s Intent to Produce Metaverse Restaurants


Following a slew of well known brands filing trademarks for metaverse related products and virtual goods, the American fast food firm founded in 1940, McDonald’s, has filed for ten trademark applications that describe plans to offer virtual restaurants and other ... read more.Binance Invests $200 Million Into the Business Magazine and Digital Publisher Forbes Fintech Specialists Predict Ethereum Price Hitting $6,500 This Year Before Rising to $26,338 by 2030 JPMorgan Predicts Long-Term Bitcoin Price of $150K — Outlines Challenges Ahead City of Miami Gets $5.25M Disbursement From Miamicoin as MIA Flounders 88% Lower Than Price High