Global Regulation Urgently Needed for Banks to Help Clients Invest in Crypto – Regulation Bitcoin News

JPMorgan executives stated that banks need a globally consistent regulatory framework for crypto assets in order to be able to manage them on behalf large clients. “We need a globally consistent regulatory framework. It’s important that we get to a solution as quickly as possible.”

JPMorgan says urgent global regulatory framework is needed to allow banks to offer crypto exposure to clients

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.

JPMorgan executives stated that banks need to have certainty when handling crypto assets for customers with large amounts.

A rising number of institutions including hedge funds are keen to invest in crypto assets and gain exposure. According to Wells Fargo, cryptocurrency has entered the “hyper adoption phase.”

Toennies observed that JPMorgan was asked to provide crypto-asset hedges for large firms.

A globally uniform regulatory framework is what I believe we need. It’s important that we get to a solution as quickly as possible.

The Basel Committee on Banking Supervision, a global banking regulatory body, is discussing regulations for crypto asset management. The Committee suggested that crypto assets be divided into two categories and that they are regulated based on market liquidity and credit. Final rules will not be published until the end of next year.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.

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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.

Are you in agreement with JPMorgan that banks need clear crypto rules? Comment below to let us know your thoughts.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.