US regulators warn banks over cryptocurrency risks

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The announcement comes just two months after the collapse of FTX sent shockwaves through the industry.

"The events of the past year have been marked by significant volatility and the exposure of vulnerabilities in the crypto-asset sector," the statement said.

Banks were also encouraged to take steps to avoid problems in the digital asset market spreading to the wider financial system. Tuesday's statement comes after months of hesitancy by US financial industry watchdogs to issue uniform guidelines on cryptocurrencies, despite banks inviting clearer advice from regulators.It was the world's second largest cryptocurrency exchange and the entry point for millions of people into the digital asset market.

 

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