By Richard Hines
According to a report released by JPMorgan, a leading institution in asset management, investment banking, and a host of other financial services, the quite brutal fall of the famous crypto exchange, FTX, will lead to the acceleration of the launching of rules and regulations in the crypto industry.
FTX’s Fall Will Serve As A Catalyst For Crypto Regulations.
A few weeks ago, the crypto industry witnessed the nasty fall of the popular crypto exchange, FTX, and since then, a significant number of losses have been experienced.
Rightfully so, the fall triggered a number of crypto experts and economists to come out to give their opinions on the situation, and a host of suggestions for the betterment of the industry have been made. One of the suggestions that keeps rearing its head is the need for the crypto industry to be uniformly regulated.
Arguments have been made that the crypto industry is a financial one and, like its traditional counterpart, should not be exempt from a proper and comprehensible set of regulations.
While a couple of key players in the industry have shown their displeasure that regulating the crypto industry is relegating it to the position of traditional finance, it appears that the movement for the regulations is still waxing stronger.
On Thursday, November 24, JPMorgan stated in a report released to the public that the proposed crypto regulatory initiatives will be hastened up by the FTX and Alameda Research’s fall.
According to the report, the European Parliament is already on its way to giving its final assent to the European Union’s Markets in Crypto Assets (MiCA) bill, and once that happens, it will create a big shift in the industry.
JPMorgan has said that the regulation, which was supposed to wait one year and a half (18 months) after the final approval, is now likely to commence almost immediately given the current situation.
Crypto Regulations Will Create A Meeting Point With TradFi
While noting that there might be a few hitches in the way, JPMorgan stated in the report that the introduction of crypto regulations will no doubt create a nexus between trading finance and the crypto industry.
Also, when talking about the switch to decentralised finance, the firm noted that DeFi, though steadily growing, will face a lot of challenges and that the firm is still unsure of the new rage.