JPMorgan Chase CEO, Jamie Dimon, believes that cryptocurrencies and fintech sector pose "tremendous risk" to the banking system.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
In a recent letter to shareholders, the bank's head said regulators need to decide "what they want included in the regulatory system – and what they do not want included."
"There are serious emerging issues that need to be dealt with – and rather quickly: the growth of shadow banking, the legal and regulatory status of cryptocurrencies, the proper and improper use of financial data, the tremendous risk that cybersecurity poses to the system, the proper and ethical use of AI, the effective regulation of payment systems, disclosures in private markets, and effective regulations around market structure and transparency," Dimon said.
The JPMorgan CEO claims the growth in shadow and fintech banking "calls for level playing field regulation." Dimon admitted he might be accused of complaining about bank regulations, however, he is simply "laying out the facts" for the bank's shareholders.
Dimon's statements come after Plaid, a fintech startup based in San Francisco, raised $425 million in a Series D round, bringing its valuation at $13.4 billion. The unicorn raised funds from new investors, including Altimeter Capital, Silver Lake, and Ribbit Capital in addition to Andreessen Horowitz, Index Ventures, Kleiner Perkins, and others.
Earlier in March, JPMorgan noted balancing buying power between retail and institutional investors for the first time over the past few years. According to the bank, Square and PayPal generated a total of 187,000 BTC (EXANTE: Bitcoin) sales amid retail investors so far this quarter, compared to roughly 205,000 last quarter.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.