US regulators are warning banks to be more careful when dealing with cryptocurrencies. The main risks for financial institutions were legal uncertainties and false or misleading communications from companies in the digital money industry, the US Federal Reserve, the deposit insurance fund FDIC and the banking regulator OCC jointly announced on Tuesday.
Regulators are concerned about the safety of banks with business models heavily focused on the crypto sector. It is important that risks in this area that cannot be managed do not spread to the banking sector.
Crypto exchange FTX filed for bankruptcy protection on Nov. 11 after customers made massive withdrawals in response to its secret move of $10 billion in deposits. Founder and CEO Sam Bankman-Fried resigned as boss the same day. He is on trial in the US on charges of fraud, which he denies. The collapse of FTX has rocked the crypto world.
Source: Krone
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