The federal bank of America has released a press note published on the federal reserve and federal deposit insurance corp, saying, “due to lack of monitoring on crypto assets, the crypto-asset companies are a contagion risk for the banks. They also take notice of frauds and scams in the name of cryptocurrency and false publicity by crypto asset firms.
Despite the fear of a lack of cryptocurrency regulations, the banks and regulators have continued their relationships with the crypto asset companies. However, banks need to be more cautious when investing in cryptocurrencies or crypto asset-related companies, as they might wash out their capital because of the due risk and heavy fluctuations in the crypto market.
A joint statement released by The US Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency says “they were closely monitoring the crypto activities of banking organizations.”
David Scwed, chief operating officer at blockchain security firm Holborn, says, “The statement is a bit ominous as far as the riskiness of crypto goes, without any advice on how to address it.” However, he expressed his hope for federal bank regulators, willing to cooperate with the crypto asset companies and deal with the irregularities. However, he added that many more actions are required to bring new regulations regarding crypto asset companies.