US regulators mainly warn banks against activities involving cryptocurrencies, especially in light of the growing interest of financial institutions in these assets.
- FED, OCC Y FDIC Warn Banks About Cryptocurrencies
- They indicate that operations with these assets threaten the banking model
- They ask to consider the difficult situation that companies in the crypto sector are experiencing
- These organizations consider that these assets are a danger to the economy
A group of US regulators among which the most notable is the US Federal Reserve (FED)published a statement warning about the risks that cryptocurrencies imply for the local banking system.
The statement in question was published on the official page of the fed, and among the other regulators involved are the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). These entities call on interested parties to be very careful with this type of asset, asking them to consider the difficult situation that major companies in the sector have experienced throughout 2022.
The statement reads:
Given the significant risks highlighted by the recent bankruptcies of several large crypto asset companies, the agencies continue to take a careful and cautious approach related to cryptocurrency-related activities and exposures and current proposals at each banking organization.
Another of the warnings issued by regulators has to do with the issuance and safekeeping of digital tokens, situations that it qualifies as inconsistent with the safe and sound banking practices that represent the industry. In this regard, they point out security concerns, since in their view the business models that focus on activities related to cryptocurrencies leave much to be desired.
Ratifying his position
Although this would be the first time that these regulators have ruled on the sector in 2023, the truth is that all of them have expressed their reservations regarding cryptocurrencies on several occasions.
Take for example the fed, which is requesting all institutions that have direct and/or indirect exposure to cryptocurrencies to duly report it to the agency, this to keep a record and take measures to prevent said entities from being harmed by operations with said assets.
However, not everything is bad, since just as there are reservations regarding operations with cryptocurrencies, at least the occ extended the provisional statutes granted to crypto banks that operate with fiat money. However, a new resolution indicates that if these entities wish to operate as lenders, they must now receive approval in advance before involving digital currencies in their operating models.
Let us keep in mind that in December 2022, the main directors of said agencies agreed with the Financial Stability Oversight Board include cryptocurrencies within the areas classified as risky for the local financial system.
Article by Angel Di Matteo / DailyBitcoin
Picture of Unsplash
CAVEAT: This is an informative article. DiarioBitcoin is a communication medium, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. They may not be suitable for retail investors, as the entire amount invested could be lost. Check the laws of your country before investing.