Initially reluctant to adopt cryptocurrencies, American banks ended up including them in their services. Today, they compete in creativity in order to offer their clients the best exposure to the cryptocurrency markets. Faced with the growing phenomenon, the Federal Reserve has urged banks to ensure the legality of their crypto services.
A measure to protect customers from the many risks associated with cryptos
It was through an open letter published on Tuesday that the Fed reminded American banks of their obligations when entering the crypto market. Most important of all is to check that the various crypto services they wish to launch are legally allowed in the country. While acknowledging that cryptocurrencies “ present opportunities for banks and their customers, the Fed has emphasized the associated risks. She mainly cited cybercrime, money laundering and financial instability.
“Cryptocurrency-related activities may also present risks related to security and soundness, consumer protection and financial stability. Certain types of crypto assets, such as stablecoins, if widely adopted, could also pose financial stability risks, including potential disruptions in payment systems. “, says the letter from the Fed. From then on, the institution invited the banks to approach it to put in place risk management and control systems.
Far from opposing the introduction of crypto services within banks, the Fed wants it to be done in compliance with American laws. For it, this is an essential prerequisite for protecting consumers and maintaining their financial stability. To this end, it is also preparing to create guidelines for bitcoin and crypto banks.
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