Banks To Report Cryptocurrency Activity?
It has been asked by the United States Federal Deposit Insurance Corporation (FDIC) that any crypto-related activity that banks under its control are involved in or plan to participate in be reported to the agency.
Specifically, the federal regulator requested that banks provide any information “that will allow the agency to assess the safety and soundness of financial institutions, consumer protection implications, and financial stability implications of such activities.” The letter was published on the agency’s website.
FDIC Statements
Additionally, the FDIC wanted a suggested schedule for any planned operations in addition to giving specifics on the intended activity itself. The Federal Deposit Insurance Corporation (FDIC) said that it will analyze the material once it was received and give necessary supervisory input.
As stated in the letter, the Federal Deposit Insurance Corporation (FDIC) is supportive of innovations, subject to the conditions of safety, regulatory compliance, and fairness to customers.
The regulator, on the other hand, voiced worry about crypto assets, stating that, given the rapidity with which they have grown, there has been insufficient experience with them to fully appreciate the hazards associated with them.
Thus, the Federal Deposit Insurance Corporation (FDIC) said that “insured depository institutions confront risks in successfully managing the application of consumer protection laws and regulations to new and evolving crypto-related activity.”
Additionally, it considers that crypto-related activities pose major safety concerns to consumers and, as a result, might end up jeopardizing the financial stability of the country.
The FDIC has cautioned that customer uncertainty over crypto-assets might result in disruptions such as a “run” on a company’s financial assets.
