US regulators warn banks of crypto exposure risks
finextra.comBanks issuing or holding crypto tokens stored on public, decentralized networks are "highly likely" to be inconsistent with safe and sound banking practices, the regulators added.In a statement, the agencies say: "Given the significant risks highlighted by recent failures of several large crypto-asset companies, the agencies continue to take a careful and cautious approach related to current or proposed crypto-asset-related activities and exposures at each banking organization."In December, the New York Department of Financial Services (DFS) said that banks need to let it know about any virtual currency plans at least 90 days before commencing the activity. The rules apply even if any portion of those activities are to be conducted by a third party.
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