Cryptocurrency Market is at RISK

The cryptocurrency market is at risk of doing business with the banks warned by the US regulators. They have issued their first-ever joint warning to banks about the risks correlated with the cryptocurrency market. 

Oversight authorities have asked financial institutions to be wary of potential fraud, legal misinformation and false statements by digital asset companies. This happened just two months after the collapse of the FTX trading platform, which affected the whole cryptocurrency industry. 

In a joint statement, the US central bank, the  Federal Deposit Insurance Corporation and the office of Comptroller of the Currency said they are monitoring the crypto activities of banking organizations very closely. 

US regulators stated in a report that the events of the past year were marked by significant volatility and exposure of amenabilities in the crypto-asset sector. 

They also said that issuing or holding cryptocurrencies, which are stored on public decentralization networks, is highly likely to be of  safe and sound banking practices. Also, they urged banks to step forward, so they can avoid problems in the digital asset market spreading to the wide-range financial system.