To expand its services further into the cryptocurrency market, international investment bank JPMorgan Chase has appointed a new head of regulatory policy for digital assets. This action was taken following a 17% decline in the bank’s third-quarter net profits.
The CEO of JPMorgan Chase, Jamie Dimon, previously criticized cryptocurrency as a type of decentralized Ponzi scheme, but, according to a Bloomberg article, Aaron Iovine, an ex-Celsius executive, has entered JPMorgan Chase as the executive director for regulatory policy related to digital assets.
For the company Celsius which lends digital assets, Aaron Iovine oversaw the policy division and regulatory board. The latest fall in the cryptocurrency market led to the company filing for bankruptcy. Nevertheless, the former Celsius worker has not yet commented on the situation.
According to the article, JPMorgan is attempting to advance its policy positions in the burgeoning cryptocurrency industry. The rise in regulatory attention and the decline in the value of cryptocurrencies have given rise to more perspectives in the market. Officials at JPMorgan have been outspoken skeptics of virtual assets and their applications.
In his appearance before Congress on September 21, Dimon made a remark about the Ponzi scheme. But he also identified as a strong critic of crypto assets. The global head of payments at JPMorgan stated that there is not much of a need for virtual tokens as a means of payment.
JPMorgan announced a significant decline in its net income for the quarter at the same time. It decreased to $9.7 billion by a total of 17%. Nevertheless, there has also been a large decrease in cash designated for reserves.
The legal dispute has trapped the bankrupt lending company for digital assets. The US bankruptcy chief in charge of the Celsius case reportedly urged that they review the UK crypto consultation document. The court may take the material into account in litigation concerning digital assets presenting legal difficulties, he continued.