Despite the market changes, P Morgan, one of the biggest banks in the US, hasn't held back from saying that it believes in the crypto 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 customers feel more secure about their cryptocurrency holdings in addition to additional restrictions, attracting more investments.
According to JP Morgan, a sizable portion of global crypto regulation will be influenced by laws that already exist in the conventional finance (TradeFi) industry, such as those requiring frequent KYC checks and reserve audits for exchanges, stablecoin issuers, lenders, and custodians.
The lender stakes that these regulations will eventually cause bitcoin and TradFi to collide.
To protect the cryptocurrency business from as many threats as possible, a few issues must currently be rectified.
Risks related to smart contract hacking and DeFi's disadvantage over TradeFi due to over-collateralization have been listed as severe issues in the crypto market.
JP Morgan was founded in 2000 and makes the claim that it serves over 135,000 clients in more than 180 countries. The lender, who has been in operation for about 23 years, is currently trying to make a name for itself in the cutting-edge Web3 industry.
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 expectations line up with other research studies that assert that rules governing the cryptocurrency industry would also seize bitcoin from crooks who use it to process financial fraud.
According to a new analysis by the cybersecurity company Kaspersky, the global norms and regulations governing cryptocurrency transactions will make it less attractive for criminals to utilize Bitcoin as a payment channel.
Nations from all over the world are collaborating to create legal regulation for the cryptocurrency sector. The MiCA legislation, which primarily focuses on consumer protection as well as the prevention of market manipulation and financial crimes in the cryptocurrency industry, was passed last month by the Economic and Monetary Affairs (ECON) Committee of the European Parliament.
The G20 nations will soon get a taxation framework for the cryptocurrency industry from the Organization for Economic Cooperation and Development (OECD).
India will assume the G20 group chairmanship next month and hold that position for the following 12 months. India is trying to collaborate with the other 19 G20 members to develop a framework for cryptocurrencies that would operate globally as one of its top goals.
