US supervisory authorities and the FED jointly issue crypto warnings-regulation

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Compotroller of the Currency (OCC) have warned banks together against cryptor risks. "The authorities have significant security and solidity in business models that focus on activities related to crypto-assets or that focus on the crypto asset sector," explained the supervisory authorities.

US supervisory authorities warn of crypto risks

The Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Compotroller of the Currency (OCC) published a joint statement on crypto risks for banking organizations on Tuesday.

They explained that the events last year showed "considerable volatility and the detection of weaknesses in the crypto-asset sector". The supervisory authorities named many risks, including fraud and fraud, legal uncertainties, inaccurate or misleading representations of crypto companies, considerable volatility on the cryptoma markets, run risks and infection risks. "It is important that risks in connection with the crypto asset sector, which cannot be reduced or controlled, do not migrate to the banking system," emphasizes the common explanation.

"Based on the current understanding and previous experiences of the authorities, the authorities are of the opinion that the output or maintenance of crypto-assets that are output, stored or transferred in an open, public and/or decentralized network or a similar system is probably not compatible with safe and solid bank practices," the explanation continues and adds:

The agencies have significant security and solidity in business models that concentrate on activities related to crypto-assets or have concentrated engagements in the crypto asset sector.

The Federal Reserve, the FDIC and the OCC found that they "continue to monitor the risks of banking organizations associated with crypto-assets", and concluded:

banking organizations should ensure adequate risk management, including supervision by the board, guidelines, procedures, risk assessments, controls, blocks and guardrails as well as monitoring to effectively identify and control risks.

What do you think of the common crypto warnings of the Federal Reserve, the FDIC and the OCC? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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