As per J P Morgan’s executive, a global crypto regulatory framework is much needed that will allow banks to deal with digital crypto assets to assist a large number of customers. It is very crucial and we need to find a solution promptly.
On Tuesday at Head and managing director of Regulatory Affairs at global investment bank J P Morgan Chase. Debbie Toennies spoke at the International Swaps and Derivatives Association, about the applicability of crypto regulations to the banks.
There is an increase in the numbers of institutions and hedge funds and their interest in investing and evolving in the crypto market. According to Wells Fargo, Cryptocurrency has now plunged into a hyper-adoption phase.
Debbie Toennies, also noted that some big players have requested J P Morgan to hedge their risk in crypto assets. Also stated that she believes that we do need a consistent globally regulatory framework.
A batch of global banking regulators, at The Basel Committee on Banking Supervision, had a debate on how the bank should deal with the crypto assets. The committee suggested splitting up the crypto assets into groups and regulating them based on their market, operational risks to banks, liquidity, and credit. However, nothing has been confirmed yet, as the final rules are not to be expected until next year.
Debbie Toennies also disclosed that the global investment bank discussed the interim treatment of crypto assets with multiple jurisdictions. And also anticipating potentially applicable rules by the Basel Committee