The agencies say they have “significant safety and soundness concerns” with business models that are concentrated in crypto-asset-related activities or have exposure to the crypto-asset sector.
As a result, in a year marked by “significant volatility” in the cryptosphere, the agencies have highlighted a number of “key risks” that banking organisations should consider.
Among these risks are frauds and scams, legal uncertainties around custody practices and ownership rights, significant volatility in crypto-asset markets, and risks associated with wider decentralised finance networks.
