JP Morgan, one of the largest banks in the United States, has not hesitated to express its faith in the cryptocurrency sector despite the volatility affecting the market. As outlined in its latest Global Markets Strategy Report, JP Morgan expects the cryptocurrency industry to undergo major changes as 2023 begins. Along with more regulations, JP Morgan believes that the use of self-guarding hardware wallets can help people feel more secure. Their cryptocurrency holdings, thus bringing in more investments.
JPMorgan Expect a large part of global crypto regulation to be inspired by the rules governing the current traditional finance (TradeFi) sector, such as regular KYC requirements and reserve audits of exchanges, stablecoin issuers, as well as lenders and custodians.
The lender is betting that these rules will eventually lead to a rapprochement encryption with TradeFi.
Right now, there are a few issues that need to be resolved to protect the cryptocurrency industry from as many risks as possible.
JP Morgan, which claims to cater to more than 135,000 clients in over 180 countries, was founded in 2000. After nearly 23 years in business, the lender is now looking to establish itself in the new Web3 domain.
In recent months, JP Morgan has made several decisions to support cryptocurrency adoption. It is expected to launch the largest bank in the United States crypto wallet service in the near future.
The bank’s prediction coincides with other research reports that also claim that laws related to the crypto sector will also snatch BTC away from scammers who use it as a tool to process financial exploits.
In a recent report, cybersecurity firm Kaspersky He said that upcoming rules and regulations around crypto transactions around the world, will make Bitcoin less attractive for criminals to use as a payment gateway.
Countries around the world are coming together to provide legal oversight to the crypto industry. Last month, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) agreed The MiCA legislationwhich largely revolves around consumer protection as well as preventing market manipulation and financial crime in the crypto sector.
The Organization for Economic Co-operation and Development, or OECD, is Planning To present a tax framework around the crypto sector to members of the G20 countries in the coming days.
Next month, India will take over the presidency G20 group He will continue to chair the International Federation for next year. Among its top priorities, India is looking forward to working with the other 19 G20 member states in crafting a framework around cryptocurrencies, which would work on an international level.