The US Federal Reserve sets rules for banking transactions with cryptocurrencies.
(Photo: Reuters)
Washington The US Federal Reserve (Fed) has issued guidelines for banks on how to deal with cryptocurrencies. In addition, all credit institutions planning a business with digital money would have to inform the central bank in advance. It is also the task of the respective bank to ensure that the planned transactions are legally compliant, the Fed announced on Tuesday. Of particular importance is the availability of risk management systems that ensure that the volatile assets do not violate consumer protection.
The move comes just days after several Democratic senators urged the OCC to amend its existing guidance on cryptocurrencies. Last year, US banking regulators, including the Fed, said they would clarify in 2022 whether banks would be allowed to hold digital assets on their balance sheets and facilitate crypto trading on behalf of clients.
Cryptocurrencies such as bitcoin or ether have increasingly developed from a niche phenomenon to a permanent fixture on the financial market in recent years. Banks also want to make money from the digital speculation frenzy. But prices fluctuate wildly, as the recent crash showed once again. Small investors suffer heavy losses again and again. Regulators like the Fed are therefore under pressure to close regulatory gaps in the crypto market.
More: All developments related to cryptocurrencies in the live blog.
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