JPMorgan: Global Regulation for Banks to Help Clients Invest in Cryptocurrencies is Urgently Needed.
According to a JPMorgan official, a worldwide consistent crypto regulatory framework is urgently needed to allow banks to handle crypto assets on behalf of major customers. "We require a global regulatory system that is uniform." It's critical that we find a solution as soon as possible."
According to JPMorgan, a global regulatory framework is urgently needed to allow banks to offer crypto exposure to clients.
At an event hosted by the International Swaps and Derivatives Association on Tuesday, Debbie Toennies, managing director and head of Regulatory Affairs at global investment bank JPMorgan Chase & Co., discussed worldwide cryptocurrency regulation that applies to banks.
New laws are urgently needed, according to the JPMorgan executive, to give banks confidence in handling crypto assets on behalf of major customers seeking exposure to this asset class.
A rising number of significant institutions, including hedge funds, are interested in investing in the crypto asset class and acquiring exposure to it. Cryptocurrency has entered the "hyper adoption era," according to Wells Fargo.
Toennies commented, "Some very major players have requested JPMorgan to hedge their exposures to crypto assets," noting that "some very large players have asked JPMorgan to hedge their exposures to crypto assets."
I believe that a worldwide consistent regulatory structure is required. It's critical that we find a solution as soon as feasible.
At the Basel Committee on Banking Supervision, global banking regulators are debating how banks should deal with crypto assets. The Committee advocated splitting cryptocurrency assets into two classes and regulating them based on market, liquidity, credit, and operational risks to banks in June of last year. Final rules, on the other hand, are not expected until at least next year.
Toennies disclosed that the global investment bank has been discussing "interim treatment" for crypto assets with various jurisdictions while waiting for the Basel Committee to draft suitable guidelines.
According to JPMorgan's head of regulatory affairs,
The fundamental risk to all of our economies is that until we find a solution that allows banks to connect with their clients in a hedged manner, this activity will go outside of the regulatory perimeter, and I am concerned about financial stability.
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financial stability, jpmorgan, the Basel committee, banks, banks crypto, banks crypto regulation, banks crypto rules, banks cryptocurrencies, Cryptocurrency regulation, Cryptocurrency regulations, financial stability
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