A major US bank regulator said on Monday that it is a federally unregulated cryptocurrency He said it can be difficult to trust his company.
OCC: “It Is Not Possible For People To Know Which Cryptocurrency Company They Can Trust”
Michael Hsu, acting head of the U.S. Office of Currency Regulatory (OCC), said that in its current form, there is no way for people to know which crypto firms they can trust.
Speaking at an event held at the International Bankers Institute in Washington, Hsu said:
“We won’t know which companies are trustworthy or not until a trusted third party, such as a consolidated home country auditor, has meaningfully audited them. Currently, no crypto platform is subject to consolidated control. Not even one.”
Hsu said the FTX turmoil of last year reminded him of former international bank Bank of Credit and Commerce International (BCCI). With this example, Hsu warned of what would happen if platforms with complex cross-border activities were not thoroughly audited by a single regulator.
Hsu said this 1991 collapse presents “striking similarities” to FTX and is a lesson for governments to insist that a single regulatory agency can see an entire agency.
He noted that international standard-setting bodies such as the Financial Stability Board (FSB) are working on comprehensive global frameworks to oversee the industry.
Hsu concluded his statements as follows:
“Trust is a fragile thing. We learned this the hard way in banking. I believe this contains useful lessons for cryptocurrencies.”
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price tracking right now by downloading our apps!