US Federal Regulators Warn About Crypto Activities

US Federal Regulators Warn About Crypto Activities
The crypto space received more regulatory attention through the end of 2022. The collapse of one of the largest global digital asset exchanges brought massive losses to the industry. This event spurred several watchdogs to express concerns and issue warning on cryptocurrency engagement. Some US Federal regulators have recently commented on crypto activities’ risks. The watchdogs include the Federal Reserve, Federal Deposit Insurance Corp, and the Office of the Comptroller of the Currency (OFOC). Related Reading: Litecoin Whale Withdraws $32M In LTC From Binance, Good Sign For Rally? According to the report on Tuesday, January 3, 2023, some officials of the three regulatory agencies warned lenders about exposure to digital assets. They cited that the escalating risks should not extend to the banking system. Regulators Cited Associated Risks With Crypto Engagement The warning from the watchdogs is coming after the fall of the FTX digital asset exchange in 2022. Millions of customers lost their funds on the distressed platform, estimated to be more than 8 billion. From their observations, the US regulators cited the high volatility and vulnerabilities seen in th ..

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