According to JP Morgan, as regulation grows, cryptocurrency will converge with traditional finance.
- JP Morgan recently made a number of pro-crypto decisions.
- The US bank intends to introduce its own cryptocurrency wallet.
- JP Morgan supports TradeFi-inspired guidelines for regulating the cryptocurrency market.
Despite the market changes, JP Morgan, one of the biggest banks in the US, hasn't held back from expressing its confidence in the cryptocurrency industry. As stated in its most recent Global Markets Strategy report, JP Morgan anticipates that beginning in 2023, the crypto business will experience substantial shifts.
JP Morgan thinks that using self-custodial hardware wallets may help people feel more secure about their cryptocurrency holdings in addition to additional regulations, attracting more investments.
According to JP Morgan, a sizable portion of global crypto regulation will be influenced by laws that already exist in the traditional finance (TradeFi) sector, such as those requiring regular KYC checks and reserve audits for exchanges, stablecoin issuers, lenders, and custodians.
The lender stakes that these regulations will eventually cause crypto and TradFi to converge. To protect the cryptocurrency industry from as many risks as possible, a few issues must currently be resolved. JP Morgan has made a number of steps in recent months to encourage the adoption of cryptocurrencies. It is anticipated that the largest bank in the US would soon introduce a cryptocurrency wallet service.
The bank's predictions line up with other research studies that assert that laws governing the cryptocurrency industry would also seize bitcoin from scammers who use it to process financial fraud.
According to a recent report by the cybersecurity company Kaspersky, the global rules and regulations governing cryptocurrency transactions will make it less attractive for criminals to use Bitcoin as a payment gateway.