U.S. Regulators to Closely Monitor Banks With Cryptocurrency Exposure
In a joint statement, the Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) have warned banks about crypto.
The regulators warned banks about the “significant volatility and vulnerabilities” the crypto industry has experienced over the past year. The regulators added that banks with crypto exposure could especially be at risk.
The statement says regulators will carefully review future proposals from banks to participate in crypto-related services. This ensures that crypto-asset risks do not migrate to the banking system.
The aim is to align the crypto assets-related activities from banks with safe and sound banking practices. This would mean crypto services provided by banks comply with consumer protection, legal permissibility, and other…
