Federal bank regulatory agencies in the United States on Tuesday raised the alarm of “key risks” for banks associated with crypto-assets and the crypto-asset sector.
The alert describes the “several risks”, as demonstrated by the significant volatility and vulnerabilities over the past year.
They promised to continue to assess whether the activities are conducted in a manner that is safe, legally permissible, and in compliance with applicable laws and regulations.
In July 2021, CoinMarketCap estimated that about $98billion was wiped off the entire cryptocurrency market within 24 hours.
Five months earlier, the Central Bank of Nigeria (CBN) ordered banks to stop transacting in cryptocurrencies, threatening to sanction defaulters.
In May 2021, the Chinese government threatened to deal with financial institutions that offer cryptocurrency services.
A joint statement by the regulators declared virtual currency has no real value, warning that the price can be manipulated.
