Debbie Toennies, chief executive officer and head of regulatory affairs at global investment bank JPMorgan Chase & Co., spoke on Tuesday about global cryptocurrency regulation applicable to banks at an event held by the International Swaps and Derivatives Association. The JPMorgan executive said new rules are urgently needed to give banks confidence in managing crypto assets on

of large clients seeking exposure in this asset class.

A growing number of large institutions, including hedge funds, are interested in investing and gaining exposure to the crypto asset class. According to Wells Fargo, the cryptocurrency has entered the "hyper adoption phase". Noting that some very large players had asked JPMorgan to invest in crypto assets, Toennies said there is a need for a globally consistent regulatory framework and that it is important to get to a solution as quickly as possible.

The global banking regulators of the Basel Committee on Banking Supervision are discussing the rules for banks to manage crypto-assets. In June last year, the Committee proposed dividing crypto assets into two groups and regulating them based on their market, liquidity, credit and operational risks to banks. However, the final rules aren't expected until at least next year.

Toennies revealed that the global investment bank has spoken with several jurisdictions about "interim treatment" for crypto assets pending the Basel Committee to establish applicable rules. JPMorgan's head of regulatory affairs wrote that the real risk to all of our economies is that if you don't come up with a solution that allows banks to interact with customers comprehensively, this business will go outside the regulatory perimeter. and this could jeopardize financial stability.