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   651

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 Join Forces With IdentityMind

IdentityMind provides exchanges with ability to comply with KYC\AML worldwide
26 March 2019   79

Binance announced an agreement with IdentityMind, which will help it ensure compliance with regulatory requirements and improve data security.

IdentityMind provides cryptocurrency exchanges with access to the platform, thanks to which they can monitor compliance with customer identification and anti-money laundering requirements in real time. This includes connecting new customers, managing their profiles and monitoring transactions.

The partnership between Binance and IdentityMind further strengthens our compliance capabilities and our commitment to re-invest in the blockchain ecosystem and grow it. We continue to evolve and enhance security systems while adhering to regulatory mandates in the countries we operate in. The goal is to foster greater trust among financial institutions worldwide.

Samuel Lim

Chief Compliance Officer, Binance

Last year, Bloomberg wrote about the Binance user identification system as the least strict in the entire industry, and linked the “level of anonymity” provided by the exchange with the risks of money laundering and market manipulation.

In October, Binance entered into an agreement with a supplier of transaction analysis software on the blockchains Chainalysis, and in November with Refinitiv, which developed an automated solution for client verification.

Whether the ordinary users of the platform will feel the impact of the integration of IdentityMind tools on themselves, the exchange does not specify.