Friday, September 30, 2022

US Banks Will Have To Seek Regulator Approval For Crypto Services

Regulators have increased scrutiny in many countries regarding the crypto segment. The US Federal Reserve has issued additional guidelines for banks planning to launch services related to cryptocurrencies. It states that banks must notify the Federal Reserve before commencing services and ensure that these services are permitted under the law.

Federal Reserve in a statement Told That cryptocurrencies can provide opportunities for banks to increase business. However, it needs to be ensured that such a system is in place for these services so that the interests of consumers are not harmed by this high-risk asset. Banks already providing crypto services have also been asked to inform the Federal Reserve. According to the Reuters report, under these guidelines, banks will have to put in place an adequate risk management system before starting these services. Recently, several Democrat senators called on the Office of the Controller of the Currency (OCC) to make stricter regulations regarding cryptocurrencies.

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For the last few months, the crypto market has been selling due to slowdown and some other reasons. Due to this the prices of cryptocurrencies have come down and investors have suffered huge losses. Due to the slowdown in the crypto market, many firms in this segment are cutting their workforce to reduce costs. Coinbase, one of the major crypto exchanges, has decided to reduce its workforce by 18 percent. Headquartered in the US, the firm says that it has taken this step to cut costs in this difficult period of the industry. The decision is expected to result in layoffs of over 1,000 employees of the exchange.

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Earlier crypto trading and lending platform BlockFi announced the removal of around 200 employees and crypto exchange Crypto.com about 260 employees. Both these firms have given similar reasons for reducing the workforce. Bitcoin, the largest cryptocurrency by market capitalization, touched a high of $69,000 in November last year. Its price has come down to around $24,000 after a continuous fall.

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(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)

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