--- title: "According to JP Morgan, as regulation grows, cryptocurrency will converge with traditional finance." description: "According to JP Morgan, a sizable portion of global crypto regulation will be influenced by the laws that currently control traditional banking." author: "Muskan Singh" published: 2022-11-29 canonical: https://www.mindstick.com/news/2463/according-to-jp-morgan-as-regulation-grows-cryptocurrency-will-converge-with-traditional-finance category: "cryptocurrency" tags: ["cryptography", "bitcoin", "cryptoexcchange", "bitcoin exchange"] reading_time: 2 minutes --- # 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](https://answers.mindstick.com/qa/110507/what-s-the-maximum-recent-update-on-cryptocurrency-market). Despite the market changes, **JP Morgan, [one of the biggest](https://answers.mindstick.com/qa/51358/what-was-one-of-the-biggest-issued-debated-in-the-1970s) banks in the US, hasn't held back from expressing its confidence in the cryptocurrency industr**y. As stated in its most recent [Global Markets](https://answers.mindstick.com/qa/114422/what-s-driving-the-rise-of-decentralized-finance-defi-in-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](https://answers.mindstick.com/qa/114301/how-is-blockchain-bridging-traditional-finance-with-cryptocurrency-adoption-trends) (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](https://answers.mindstick.com/qa/38476/name-singapore-s-largest-bank-which-has-unveiled-digibank-india-s-first-mobile-only-bank-targeting-five-million-retail-customers) 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](https://answers.mindstick.com/qa/105355/what-is-the-role-of-ai-in-financial-fraud-prevention). \ According to a recent report by the cybersecurity company Kaspersky, the global [rules and regulations](https://answers.mindstick.com/qa/37865/which-act-is-associated-with-courts-can-interpret-the-rules-and-regulations) governing **cryptocurrency** transactions will make it less attractive for criminals to use Bitcoin as a [payment gateway](https://answers.mindstick.com/qa/113305/what-is-a-payment-gateway). --- Original Source: https://www.mindstick.com/news/2463/according-to-jp-morgan-as-regulation-grows-cryptocurrency-will-converge-with-traditional-finance Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.