Checking projects for interaction with SEC
https://www.sec.gov/edgar/search/
I have heard several stories that projects are closed for this reason. They understand that if they have a check from the regulators, then they will have huge fines that they will not be able to pay and a possible criminal case. Therefore, they hope that if they close now, they will be lucky.
Topic: US regulators warn banks over cryptocurrency risks (Read 98 times)
US regulators have issued their first ever joint warning to banks over the risks associated with the cryptocurrency market, the main problem here it seems the lack of control.
Isn't that obvious? Cryptocurrency market thrives because nothing controls it. It is a true reflection of human dynamics at a global scale. No other markets show such kind of dynamics. That's what the problem is. Globally the central banks and other regulatory agencies control their own respective markets in the name of consumer protection. Crypto is only market where such nonsense controls are non-existent.
Expect more of such alerts and warnings from many other regulatory bodies all around the world. That's bound to happen!
The problem with all of this is to mix in the "crypto world" Bitcoin with more than 20,000 other crappy currencies. At heart these warnings are understandable, as the shitcoin market is very much a casino where the house in some cases cheats. Let's hope that Bitcoin is considered a commodity and the rest securities and people start to be clear about the difference.
Almost all central banks around the world are issuing such warnings, and therefore there is nothing new about them and they are not related to FTX, although such scam/hack renews these claims.
As long as they are warnings, nothing new has been taken, and they may have a bad / good side by speeding up the legal frameworks and imposing taxes instead of wasting time in the courts to prove who squandered the users' money.
As long as they are warnings, nothing new has been taken, and they may have a bad / good side by speeding up the legal frameworks and imposing taxes instead of wasting time in the courts to prove who squandered the users' money.
I think this whole FTX issue that we had last year is definitely not helping the crypto world.
I had a quick glance at the PDF file and I don't think the situation in question should be portrayed as only having a negative impact on the crypto world [e.g. they did mention consumer protection on its second page]:- Banking organizations are neither prohibited nor discouraged from providing banking services to
customers of any specific class or type, as permitted by law or regulation. The agencies are
continuing to assess whether or how current and proposed crypto-asset-related activities by
banking organizations can be conducted in a manner that adequately addresses safety and
soundness, consumer protection, legal permissibility, and compliance with applicable laws and
regulations, including anti-money laundering and illicit finance statutes and rules.
"It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system."
I need to find a link from ~2 weeks ago, this quote you posted is extremely similar: In 2023 the Global economy might see the biggest collapse in modern history. The bankers and politicians who caused it are probably setting up to blame Crypto as the root cause. I have a hunch we will be seeing this "talking point" all over the news in coming weeks.
I need to find a link from ~2 weeks ago, this quote you posted is extremely similar: In 2023 the Global economy might see the biggest collapse in modern history. The bankers and politicians who caused it are probably setting up to blame Crypto as the root cause. I have a hunch we will be seeing this "talking point" all over the news in coming weeks.
I think this whole FTX issue that we had last year is definitely not helping the crypto world.
US regulators have issued their first ever joint warning to banks over the risks associated with the cryptocurrency market, the main problem here it seems the lack of control.
Here are some of the points discussed in the joint warning:
You can find the document here: https://www.occ.gov/news-issuances/news-releases/2023/nr-ia-2023-1a.pdf
US regulators have issued their first ever joint warning to banks over the risks associated with the cryptocurrency market, the main problem here it seems the lack of control.
Here are some of the points discussed in the joint warning:
Quote
The Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit
Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)
(collectively, the agencies) are issuing the following statement on crypto-asset1 risks to banking
organizations.
The events of the past year have been marked by significant volatility and the exposure of
vulnerabilities in the crypto-asset sector. These events highlight a number of key risks associated
with crypto-assets and crypto-asset sector participants that banking organizations should be
aware of, including:
• Risk of fraud and scams among crypto-asset sector participants.
• Legal uncertainties related to custody practices, redemptions, and ownership rights, some of
which are currently the subject of legal processes and proceedings.
• Inaccurate or misleading representations and disclosures by crypto-asset companies,
including misrepresentations regarding federal deposit insurance, and other practices that
may be unfair, deceptive, or abusive, contributing to significant harm to retail and
institutional investors, customers, and counterparties.
• Significant volatility in crypto-asset markets, the effects of which include potential impacts
on deposit flows associated with crypto-asset companies.
• Susceptibility of stablecoins to run risk, creating potential deposit outflows for banking
organizations that hold stablecoin reserves.
• Contagion risk within the crypto-asset sector resulting from interconnections among certain
crypto-asset participants, including through opaque lending, investing, funding, service, and
operational arrangements. These interconnections may also present concentration risks for
banking organizations with exposures to the crypto-asset sector.
• Risk management and governance practices in the crypto-asset sector exhibiting a lack of
maturity and robustness.
• Heightened risks associated with open, public, and/or decentralized networks, or similar
systems, including, but not limited to, the lack of governance mechanisms establishing
oversight of the system; the absence of contracts or standards to clearly establish roles,
responsibilities, and liabilities; and vulnerabilities related to cyber-attacks, outages, lost or
trapped assets, and illicit finance.
It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled
do not migrate to the banking system.
Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)
(collectively, the agencies) are issuing the following statement on crypto-asset1 risks to banking
organizations.
The events of the past year have been marked by significant volatility and the exposure of
vulnerabilities in the crypto-asset sector. These events highlight a number of key risks associated
with crypto-assets and crypto-asset sector participants that banking organizations should be
aware of, including:
• Risk of fraud and scams among crypto-asset sector participants.
• Legal uncertainties related to custody practices, redemptions, and ownership rights, some of
which are currently the subject of legal processes and proceedings.
• Inaccurate or misleading representations and disclosures by crypto-asset companies,
including misrepresentations regarding federal deposit insurance, and other practices that
may be unfair, deceptive, or abusive, contributing to significant harm to retail and
institutional investors, customers, and counterparties.
• Significant volatility in crypto-asset markets, the effects of which include potential impacts
on deposit flows associated with crypto-asset companies.
• Susceptibility of stablecoins to run risk, creating potential deposit outflows for banking
organizations that hold stablecoin reserves.
• Contagion risk within the crypto-asset sector resulting from interconnections among certain
crypto-asset participants, including through opaque lending, investing, funding, service, and
operational arrangements. These interconnections may also present concentration risks for
banking organizations with exposures to the crypto-asset sector.
• Risk management and governance practices in the crypto-asset sector exhibiting a lack of
maturity and robustness.
• Heightened risks associated with open, public, and/or decentralized networks, or similar
systems, including, but not limited to, the lack of governance mechanisms establishing
oversight of the system; the absence of contracts or standards to clearly establish roles,
responsibilities, and liabilities; and vulnerabilities related to cyber-attacks, outages, lost or
trapped assets, and illicit finance.
It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled
do not migrate to the banking system.
You can find the document here: https://www.occ.gov/news-issuances/news-releases/2023/nr-ia-2023-1a.pdf
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