Fed issues warning to banks over crypto-assets
Regulators in the US have highlighted “significant risks” related to crypto. US regulators have warned banks to be aware of the key risks associated with crypto-assets, including fraud and scams, legal uncertainties and inaccurate or misleading representations. In a joint statement, the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) said the past year had been marked by significant volatility in crypto markets and the exposure of vulnerabilities in the sector.
“It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system,” the regulators said. “The agencies are supervising banking organisations that may be exposed to risks stemming from the crypto-asset sector and carefully reviewing any proposals from banking organisations to engage in activities that involve crypto-assets.” The statement follows the collapse of the FTX exchange in November last year, which sent shockwaves through crypto markets and renewed calls for increased regulation.
The rest of this article can be found at investordaily.com.au.