JPMorgan Declares Crypto a Financial Risk

In the annual report JPMorgan Chase admitted that cryptocurrency is a threat to their business for the first time
28 February 2018   535

JP Morgan Chase, an American multinational banking services holding company headquatered in New York City, is famous for its negative position towards Bitcoin and cryptocurrency. in October 2017, Jamie Dimon, CEO of JPMorgan, faced a lot of controversy after saying that Bitcoin is a fraud, and stating that it is necessary to fire anyone “stupid enough to trade Bitcoin.”

As it was revealed by Fortune, JPMorgan Chase released the annual report on February 27, where it named cryptocurrencies like Bitcoin and Ethereum “risk factors” to its business. It was the first time, when the financial giant publicly admitted that the digital currencies are new forms of competition that could "give the bank a run for its money".

Both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation.

JP Morgan Report

JP Morgan claimed that the increasing market competition is very likely to put the pressure on prices and fees for JPMorgan Chase’s products and services and can cause JPMorgan Chase to lose market share. It seems that taking into consideration the escalating popularity of digital currency, even the banking giants are starting to be afraid of the impact it may have on their businesses.

It is worth reminding that we have previously reported that JP Morgan was facing some allegations from Swiss Financial Market Authority for breaking rules of money laundering. Moreover, JP Morgan Chase had announced the launch of Interbank Information Network based on Quorum blockchain in order to reduce delays in payments between banks.

Binance to Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   74

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.