Cryptocurrency & Crypto-Asset Activity in the News

Just a friendly reminder that cryptocurrency and crypto-asset-related activities continue to be a focus of the regulatory agencies. And, as these activities become more and more common, it’s something to keep on your radar.

The Federal Reserve recently issued a Supervision and Regulation Letter reminding their banks that, while crypto-asset activities provide opportunities, there are still risks related to safety and soundness, consumer protection, and financial stability. Additionally, any Federal Reserve bank looking to engage in such activities must ensure they are allowed by state and federal laws. Those banks should also notify their lead supervisory point of contact. The letter also emphasizes that Board-supervised banking organizations should have adequate systems and controls in place to conduct crypto-asset-related activities in a safe and sound manner prior to commencing such activities.

The FDIC also recently announced it had issued cease and desist orders to five companies that it deemed to be making false and misleading statements regarding FDIC deposit insurance and cryptocurrency. The statements were made on websites and/or social media and gave the impression …that certain crypto–related products are FDIC-insured or that stocks held in brokerage accounts are FDIC-insured. In one case, a company offering a so-called cryptocurrency also registered a domain name that suggests affiliation with or endorsement by the FDIC. The five companies were Cryptonews.com, Cryptosec.info, SmartAsset.com, FTX US, and FDICCrypto.com.

New to cryptocurrency and how it can affect you and your customers? Check out our webinar, “BSA/AML: Crypto/Virtual Currency,” which is now available now OnDemand. This is a great entry-level overview of the BSA/AML risks and concerns related to crypto/virtual currency.

Published
2022/08/29

Kevin Edwards

Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).

Recent Posts

Understanding Customer Risk Profiles

Section 1071: Business Owner Status

Auditing Your BSA/AML Program