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 could pose risks to consumer protection and financial market stability.
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 could pose risks to consumer protection and financial market stability.
It is imperative for banks to check beforehand whether any crypto transactions are legal and to inform financial regulators of their plans in advance.
Cryptocurrencies such as bitcoin or ether have increasingly developed from a niche phenomenon to a permanent fixture on 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 suffer heavy losses again and again. Regulators like the Fed are therefore under pressure to close regulatory gaps in the crypto market.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
