Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A7016264237698215936
Regulators Warn Banks on Crypto After FTX Collapse: Bursting Crypto Bubbles: https://lnkd.in/gJWc7TeE : The Federal Reserve Board of Governors and other #bank #regulatory #agencies on Tuesday issued a joint statement highlighting key #risks for #banking organizations: https://lnkd.in/gZfVnt7s . The statement outlines several risks associated with #crypto #assets and the #crypto-#asset #sector, including the potential for #scams and #fraud. The statement, highlighting the “significant #volatility and #vulnerabilities over the past year,” comes less than two months after the collapse of the #crypto #exchange #FTX.
#Fed #FederalReserve #FDIC #OCC
Along with the #Fed, the statement was issued by the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency. “Given the #significant #risks highlighted by recent #failures of several large #crypto-#asset companies, the agencies continue to take a careful and cautious approach related to current or proposed crypto-asset-related #activities and #exposures at each banking organization,” the statement said. “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 agencies said.
Although banking organizations are “neither prohibited nor discouraged from providing banking services to customers of any specific class or type, as permitted by law or regulation,” the agencies are still evaluating whether or how banking organizations can conduct current and proposed crypto-asset-related activities in a way that is safe and sound. The agencies added they will continue to monitor banking organizations’ crypto-asset-related exposures and will issue additional statements related to the subject “as warranted.”
The statement was released on the same day that #FTX #cryptocurrency #exchange founder #SamBankmanFried pleaded not guilty to eight charges of fraud and other criminal charges he faces before U.S. District Judge Lewis Kaplan in Manhattan federal court.
Bank for International Settlements – BIS #BIS speech by Fabio Panetta, Member of the Executive Board of the ECB, at the Insight Summit held at the London Business School: https://lnkd.in/gG_4kwqk :
“Born in the depths of the global #financial #crisis, crypto-assets were portrayed as a generational phenomenon, promising to bring about radical change in how we pay, save and invest. Instead, they have become the #bubble of a generation. It is now obvious to everyone that the promise of easy crypto-money and high returns was a bubble doomed to burst. It turns out that #crypto-#assets are #not #money. Many are just a new way of #gambling.”: #Crypto #dominos: the bursting #crypto #bubbles and the destiny of #digital #finance.
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