The United States has begun requiring banks to report all cryptocurrency transactions
The US Federal Deposit Insurance Corporation (FDIC) has notified banks of the new rules. Now, financial institutions must warn about all transactions with cryptocurrencies.
The regulator said in a statement that due to potential systemic risks, any company or bank that has the ability to engage in cryptocurrencies should report its plans, and any institution that conducts cryptocurrencies should “immediately” notify the FDIC.
Cryptocurrency activities can pose significant security risks, as well as problems with financial stability and consumer protection.
Reuters explains that regulators are taking into account the growing popularity of cryptocurrencies and its impact on security. Joe Biden has already instructed government agencies to assess the risks and benefits of cryptocurrencies. This move is seen as a clear recognition of the potential consequences of the growing importance of digital assets.
According to the regulator, a failure in transactions or activities of cryptocurrencies can confuse customers, which will cause “raids” on the financial assets of firms.
FDIC-controlled companies must now provide detailed information on planned activities and proposed terms of agreements. The agency plans to review such information for security and reliability, financial stability and consumer protection.
