Top banking regulator orders all banks to report crypto activities
FDIC ordered all of its insured banking institutions to report their crypto-related activities.
Because of the huge shift of the population from the traditional money market to the crypto market, many banking and financial institutions integrated their support and services into crypto, to sustain the future of existing services. But these types of support for new markets are creating some issues, which are still not regulated under the existing traditional rules and laws.
On 7 April, the Federal Deposit Insurance Corporation (FDIC) released a letter to all the Chief Executive Officers of FDIC agency-insured banks. With the issued letter, FDIC ordered all the Banks to submit a report about the crypto-related activities to the local FDIC director.
Here this issued order reporting requirement will include the associated risks and financial stability-related things with the bank because of interaction with crypto-related services. And this thing will be applicable for both current and future Cryptocurrencies associated activities.
The main goal of this reporting process will be to figure out some necessary provisions by FDIC, which will be needed to make crypto-related support better with the elimination of risks and issues. So it will be a type of feedback that FDIC will get from Banks.
In February of this year, under the leadership of Martin Gruenberg, acting chairperson at FDIC, Banking regulatory body issued a warning to all the regulators to work against the risks posed because of the rapid support and adoption of crypto products and services with banks. And also urged the regulators to issue guidelines for the banks to keep the risky facts away with proper provisions.
According to some leading news websites, This latest issued letter by FDIC is an indication that the regulatory body is ready to take strict action against the crypto industry because many big banks are rapidly moving into the crypto industry to provide crypto-related investment services. For example, Bank of America and Goldman Sachs are already in talks to provide crypto related services.
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