FDIC, US federal agency, requires banks to report activities with cryptocurrencies – DiarioBitcoin

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FDIC, US federal agency, requires banks to report activities with cryptocurrencies - DiarioBitcoin By Hannah Perez

The banking regulator wants US banks to report whether they are trading cryptocurrencies or intend to do so.

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A United States government agency that regulates the activity of banks in that country is sounding the alarms about digital assets.

The Federal Deposit Insurance Corporation (FDIC) has required banks to report their cryptocurrency-related activities on a letter in which he warns about the possible risks and points out some concerns about the use of said assets. The agency also asked banks that do not yet operate with digital currencies to indicate whether they intend to do so.

The FDIC sent the letter to the CEOs of the banks under its supervision on Thursday of this week, according to media reports. CoinDesk Y Decrypt. In the document, the regulator requests that banks notify their regional FDIC director of their current and future digital asset activities.

Cryptocurrency-related activities can pose significant security and soundness risks, as well as financial stability and consumer protection concerns.“, the agency argued, expanding on these risks before justifying its request:

Therefore, The FDIC is requesting all FDIC-supervised institutions that are considering engaging in cryptocurrency-related activities to notify the FDIC of their intent and provide all necessary information that would allow the FDIC to engage with the institution regarding related risks. . Any FDIC-supervised institution that already engages in crypto-related activities must immediately notify the FDIC. Institutions that notify the FDIC are also encouraged to notify their state regulator.

Wall Street banks must report to the FDIC

The banking regulator added in the letter that it will be in charge of reviewing the information provided by the institutions and will ask more questions if necessary. Then he plans to issue “relevant supervisory comments“.

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Formed in 1933, the FDIC is an independent US federal agency whose mission is to ensure the recovery of depositors’ money in the event of a bank failure. Most banks in the country, including national banks, are supervised by the agency. According Decryptthere were about 5,000 banks by 2021.

The agency’s new requirements come at a time when a growing number of the country’s financial institutions have become interested in the new asset class. From financial giants, to the smallest commercial banks, they have been mapping out strategies to offer their clients cryptocurrency products and services.

The letter assumes that almost all banks with exposure to Bitcoin and other digital assets, including Wall Street titans like Bank of America Y Goldman Sachsthey must now disclose their cryptocurrency activities to the regulator.

In line with the regulators program

as pointed out CoinDeskthe most recent requirements of the regulator fall under the FDIC program on cryptocurrencies.

In October of last year, the then president of the agency, Jelena McWilliams, announced that the FDIC was actively working with other US regulators to issue clear guidelines so that banks and financial institutions could begin offering services such as the custody and trading of cryptocurrencies.

More recently, the new FDIC Chairman, Martin Gruenberg, reiterated the need for national regulators to provide a “solid guide” to the banking industry about the new asset class, but not before warning about the systemic risks of a “quick introduction” from crypto products to the financial system.

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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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