Jamie Dimon, Chairman and CEO of leading American multinational investment bank JPMorgan Chase, has struck back at Bitcoin (BTC / USD). In a recent interview with Axios CEO Jim VandeHei, Dimon said that BTC has no intrinsic value and that regulators would tighten their restrictions on it.
Nonetheless, he believes that the flagship cryptocurrency will be around for a long time.
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Commenting on the recent blanket ban on cryptocurrencies in China, Dimon said that he always believed that one or more jurisdictions would make it illegal. With his prediction coming true, the JPMorgan executive said he thinks BTC is some fool’s gold.
Responding to VandeHei’s question on whether regulators should introduce strict measures to curb the cryptocurrency sector, Dimon said that the government would have to regulate the industry if people continue to use digital assets for tax evasion, sex trafficking and money. ransomware.
He added that governments should regulate the cryptocurrency sector because it makes no sense to monitor everything that banks do regarding money transfers and they do not monitor cryptocurrencies, which many consider money.
The US government steps up its efforts to regulate cryptocurrencies
This news comes as US regulators continue to seek avenues to rule the crypto space. For example, the Biden administration announced that it seeks to offer up to $ 10 million in rewards in exchange for information that can help it combat encryption-related ransomware attacks.
In addition to this, the government formed a working group to monitor the flow of funds obtained from illicit activities.
The SEC is also trying to formulate guidelines to regulate the growing asset class. While Gary Gensler, chairman of the SEC, claims that the cryptocurrency sector is rife with fraud, scams, and abuse, he said the agency only seeks to introduce sufficient investor protection in finance, issuance, trading, or loans. of cryptocurrencies.
The Federal Reserve is also pushing for regulation of cryptocurrencies, with a heavy focus on stablecoins. According to Jerome Powell, chairman of the US Federal Reserve, the regulator does not intend to ban cryptocurrencies like the People’s Bank of China (PBoC) did. However, he stressed that stablecoins need to be regulated because some like Tether (USDT) are not fully backed by cash.
Despite the ban from China and negative sentiments from Dimon, BTC has made a significant comeback after gaining 5.59% in 24 hours and 21.08% in the last seven days. These gains have caused the coin to revisit the $ 50,000 level once again, and it is changing hands at $ 50,170.85 (£ 36,797.81). at the time of writing this article.
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