US Federal Reserve
Fed warns banks about risks in crypto transactions
According to the Fed, crypto transactions carry risks. photo
© Ina Fassbender/dpa
Many financial firms want to get involved in crypto assets, but the US Federal Reserve is calling for caution. The Fed warned that while the emerging business area offers opportunities, it can also pose risks to consumer protection and the stability of financial markets.
Many financial firms want to get involved in crypto assets, but the US Federal Reserve is calling for caution. The Fed warned that while the emerging business area offers opportunities, it can also pose risks to consumer protection and the stability of financial markets.
It is imperative for banks to pre-check that crypto transactions are legal and to notify financial regulators of their plans ahead of time.
Cryptocurrencies such as bitcoin or ether have increasingly developed from a niche phenomenon into a fixture in the financial market in recent years. Banks also want to make money from the digital speculation frenzy. But prices fluctuate wildly, as the recent crash showed once again. Small investors continue to suffer heavy losses. Regulators like the Fed are therefore under pressure to close regulatory gaps in the crypto market.