Title: US regulators warn banks over cryptocurrency risks Post by: SirJohnVonSlotty on January 04, 2023, 10:02:33 AM I think this whole FTX issue that we had last year is definitely not helping the crypto world.
US regulators have issued their first ever joint warning to banks over the risks associated with the cryptocurrency market, the main problem here it seems the lack of control. Here are some of the points discussed in the joint warning: Quote The Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, the agencies) are issuing the following statement on crypto-asset1 risks to banking organizations. The events of the past year have been marked by significant volatility and the exposure of vulnerabilities in the crypto-asset sector. These events highlight a number of key risks associated with crypto-assets and crypto-asset sector participants that banking organizations should be aware of, including: • Risk of fraud and scams among crypto-asset sector participants. • Legal uncertainties related to custody practices, redemptions, and ownership rights, some of which are currently the subject of legal processes and proceedings. • Inaccurate or misleading representations and disclosures by crypto-asset companies, including misrepresentations regarding federal deposit insurance, and other practices that may be unfair, deceptive, or abusive, contributing to significant harm to retail and institutional investors, customers, and counterparties. • Significant volatility in crypto-asset markets, the effects of which include potential impacts on deposit flows associated with crypto-asset companies. • Susceptibility of stablecoins to run risk, creating potential deposit outflows for banking organizations that hold stablecoin reserves. • Contagion risk within the crypto-asset sector resulting from interconnections among certain crypto-asset participants, including through opaque lending, investing, funding, service, and operational arrangements. These interconnections may also present concentration risks for banking organizations with exposures to the crypto-asset sector. • Risk management and governance practices in the crypto-asset sector exhibiting a lack of maturity and robustness. • Heightened risks associated with open, public, and/or decentralized networks, or similar systems, including, but not limited to, the lack of governance mechanisms establishing oversight of the system; the absence of contracts or standards to clearly establish roles, responsibilities, and liabilities; and vulnerabilities related to cyber-attacks, outages, lost or trapped assets, and illicit finance. It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system. You can find the document here: https://www.occ.gov/news-issuances/news-releases/2023/nr-ia-2023-1a.pdf (https://www.occ.gov/news-issuances/news-releases/2023/nr-ia-2023-1a.pdf) Title: Re: US regulators warn banks over cryptocurrency risks Post by: UFO Chaos on January 04, 2023, 10:24:20 AM "It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system."
I need to find a link from ~2 weeks ago, this quote you posted is extremely similar: In 2023 the Global economy might see the biggest collapse in modern history. The bankers and politicians who caused it are probably setting up to blame Crypto as the root cause. I have a hunch we will be seeing this "talking point" all over the news in coming weeks. Title: Re: US regulators warn banks over cryptocurrency risks Post by: SFR10 on January 07, 2023, 04:27:38 PM I think this whole FTX issue that we had last year is definitely not helping the crypto world. I had a quick glance at the PDF file and I don't think the situation in question should be portrayed as only having a negative impact on the crypto world [e.g. they did mention consumer protection on its second page]:
Title: Re: US regulators warn banks over cryptocurrency risks Post by: hugeblack on January 08, 2023, 11:56:34 AM Almost all central banks around the world are issuing such warnings, and therefore there is nothing new about them and they are not related to FTX, although such scam/hack renews these claims.
As long as they are warnings, nothing new has been taken, and they may have a bad / good side by speeding up the legal frameworks and imposing taxes instead of wasting time in the courts to prove who squandered the users' money. Title: Re: US regulators warn banks over cryptocurrency risks Post by: Poker Player on January 09, 2023, 05:55:32 AM The problem with all of this is to mix in the "crypto world" Bitcoin with more than 20,000 other crappy currencies. At heart these warnings are understandable, as the shitcoin market is very much a casino where the house in some cases cheats. Let's hope that Bitcoin is considered a commodity and the rest securities and people start to be clear about the difference.
Title: Re: US regulators warn banks over cryptocurrency risks Post by: avikz on January 10, 2023, 03:56:34 AM US regulators have issued their first ever joint warning to banks over the risks associated with the cryptocurrency market, the main problem here it seems the lack of control. Isn't that obvious? Cryptocurrency market thrives because nothing controls it. It is a true reflection of human dynamics at a global scale. No other markets show such kind of dynamics. That's what the problem is. Globally the central banks and other regulatory agencies control their own respective markets in the name of consumer protection. Crypto is only market where such nonsense controls are non-existent. Expect more of such alerts and warnings from many other regulatory bodies all around the world. That's bound to happen! Title: Re: US regulators warn banks over cryptocurrency risks Post by: zasad@ on January 11, 2023, 01:33:53 PM Checking projects for interaction with SEC
https://www.sec.gov/edgar/search/ I have heard several stories that projects are closed for this reason. They understand that if they have a check from the regulators, then they will have huge fines that they will not be able to pay and a possible criminal case. Therefore, they hope that if they close now, they will be lucky. |