J.P Morgan Sees Crypto As ‘Competition’ And ‘Risk’ To Its Business In SEC Annual Report

J.P Morgan Sees Crypto As ‘Competition’ And ‘Risk’ To Its Business In SEC Annual Report

J.P. Morgan Chase has added a segment on cryptocurrencies to the “Risk Factor” section of their 2017 annual report to the US Securities and Exchange Commission (SEC), filed yesterday, Feb. 27.

The annual report mentions cryptocurrencies under the “Competition” subsection when describing how new competitors have emerged that threaten J.P. Morgan’s operations:

“Both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation.”

The report notes that these new technologies, evidently including Blockchain, although they don’t mention it by name, “could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies.”

This competition could potentially “put downward pressure on prices and fees for JPMorgan Chase’s products and services or may cause JPMorgan Chase to lose market share.”

AliDropship is the best solution for drop shipping

Last week, Bank of America’s (BOA) released their SEC annual report that also contained a mention of cryptocurrencies as a threat to their business, with the risk of competition described in very similar terms: “the widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services.”

J.P. Morgan Chase CEO Jamie Dimon had made waves back in September 2017, when he called Bitcoin (BTC) a “fraud” and threatened to fire any employee that traded BTC on company accounts. Since then, Dimon has backtracked slightly, telling a Cointelegraph reporter at the Davos World Economic Forum that he is not a “skeptic” on cryptocurrencies.

In the beginning of February, an alleged internal report from J.P. Morgan Chase referred to cryptocurrencies as “innovative” and “unlikely to disappear” , also noting cryptocurrency’s potential to be successfully applied to payment system areas that are traditionally problematic or slow, such as cross-border payments.

imgo

Twitter Scammers Use Verified Accounts to Trick Crypto Holders

Twitter Scammers Use Verified Accounts to Trick Crypto Holders

Scammers trawling for would-be victims on Twitter are turning to a new – and troubling – tactic: obtaining accounts that have been verified by the social media company itself.

Last week, it emerged that fraudsters had moved to create accounts that mimic the Tron Foundation and its founder, Justin Sun, according to a report from BuzzFeed. The publication discovered that one of the fake verified accounts in question, @TronFoundationl, copied the real Tron Foundation’s Twitter content and even went as far as duplicating its pinned tweet, which warned users to beware of imposter accounts.

The account defrauded users by posting a link to a cryptocurrency wallet and soliciting donations in ether, promising to send 4 to 10 ether back to the first 200 users that make “contributions.” Indeed, the move appears to be an escalation of previous attempts to defraud Twitter users, wherein scammers simply created their own fraudulent accounts in an attempt to copy developers and other well-known people in the cryptocurrency space.

And while Twitter rules mandate that accounts lose their verified status when they change their names, several fraudulent accounts have managed to maintain their verification badges, which are signified by a blue check mark next to the account’s handle.

“If an account changes its username, it should lose its verified status,” said a spokesperson for the company. “Any instance of this not occurring is an error.”

The issue even drew the attention of founder Jack Dorsey, who publicly commented on Monday that “we discovered this and are fixing the process.”

Twitter login image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.