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Media

Changing Attitudes of Crypto through Compliance

Matthew Warner | June 2020

Following bitcoin’s halving event a few weeks ago, on the whole, bitcoin’s price has seen a steady increase. This uptick in price is not unexpected, with previous halving events producing similar upswings. Whilst the future price of any cryptocurrency is ultimately unknowable, some models are predicting the price over the next 18 months could reach as high as $100,000 per bitcoin.

Alongside these positive predictions, public and private perception of bitcoin and cryptocurrency is starting to shift. Whether the view of bitcoin is rising due to the price increase or the price increase is rising due to its increasing popularity is a matter for debate, but the change in stance can be seen no more clearly than in JPMorgan Chase’s attitude towards crypto. Initially sceptical of bitcoin and cryptocurrency, JPMorgan Chase CEO Jamie Dimon when speaking in 2017, comparing it to the ‘tulip mania’ of the 1600s. His words seemed to negatively impact the price of bitcoin in the following hours but as bitcoin and cryptocurrency has continued his stance has changed, with Dimon stating that the underlying blockchain technology held real value. 

In early 2019, news came that JPM had created its own digital currency based on blockchain technology. JPM Coin is pegged to the US Dollar and was designed to bring the benefits of blockchain technology and cryptocurrencies to JPM in a way they could control and benefit from – instantaneous exchanging of monetary value for faster payment and settlement times being the main focus stated. Since then, the acceptance of other cryptocurrencies seems to be on the rise, as recently both Coinbase and Gemini, two major cryptocurrency exchanges, have been approved for JPM’s banking services, with transactions reportedly already being processed. 

It’s worth noting that from the start, JPMorgan’s issue with bitcoin and cryptocurrency seems to have stemmed from its lack of regulatory oversight, noting in his first comments that ‘currencies have legal support’. Both Coinbase and Gemini are both fully regulated in the US, which no doubt contributed to JPM’s approval of their applications. If blockchain and cryptocurrency services meet regulatory standards, it seems likely that we will see an increase in the number of blockchain and crypto services being supported by mainstream financial institutions and other businesses. Many people are, rightfully or wrongfully wary, of new developments that are unregulated, or where the regulations are not clear. Without regulations, there are no safeguards or guarantees for products and services in regards to safety, security and quality, putting many people off risking using them.  

This is where Blockpass can step in to help. Being designed to facilitate regulatory compliance, Blockpass can provide a provable identity for anyone, with options for company and business identity verification currently in development. With provable identities, regulatory standards for KYC and AML and other compliance measures around the world can be met in a quick and easy solution that puts the user in control of their own data without compromising security or simplicity. When companies use Blockpass to show compliance with the various standards required by regulators globally, companies such as JPM and others will have no issue with accepting their business, and people around the world will be able to interact with new and innovative services without fear of fraud or complex compliance measures. 

Blockpass can bring regulation compliance to any traditional, cryptocurrency or blockchain solution. Once we achieve this, it could signal a future where cryptocurrencies and blockchain technology are brought to mainstream, compliance satisfied, so everyone can enjoy the multitude of benefits they bring.

The Blockpass platform is fully automated and hosted in the cloud, with no integration or setup fee. Within minutes, businesses can sign up to the KYC Connect console, test out the service, and start conducting identity documents verification, KYC and AML checks. Sign up for FREE at console.blockpass.org.