The Central Bank of the United States (Federal Reserve) announced that it has issued the “reputation risk” factor from the review programs implemented under the supervision of banks in the country. With this amendment, the obstacle affecting the provision of crypto currency services of banks in the United States has disappeared. It is seen that the decision points to a significant change in the surveillance methods of Federal Reserve.
Reputation risk factor and crypto
While the financial sector was inspected in the USA, the potential negative effects on the reputation of the banks were among the various examination criteria. In this context, additional inspections were applied on banks, considering that the banks that provide crypto money services were highly likely to encounter certain risks. With its new regulation, the FED will prevent the institutions serving in the crypto currency sector from getting extra risk points only for this reason.
With this step, US -based financial institutions, which operate in the field of crypto currency, are expected to be evaluated at an equal level with traditional financial institutions. Experts say that this development can encourage innovations in the field of crypto currency financial services.
Crypto Coins and Finance
This decision of the FED is followed by similar decisions taken by the Office Supervision Agency (OCC) and the Federal Deposit Insurance Institution (FDIC) in the USA. These institutions have recently taken steps to soften the strict audit practices in banking services related to crypto currencies. These negative discrimination steps from the Biden period are now being taken back.
The aim of the regulations is to pave the way for financial innovation and to support the spread of new technologies. It is stated that the investment of banks in crypto currency -based products and services may increase mobility throughout the sector.
“We aim to eliminate unnecessary loads by reviewing our audit practices in the banking sector.” – Fed
With this amendment, an obstacle was removed from US banks to participate in crypto technology initiatives or to provide crypto assets storage services. Banks’ efforts to develop new financial products are expected to grow.
Economic experts say that these steps can encourage competitiveness in the banking sector and make it easier for more institutions to enter the crypto finance field.
The Federal Reserve’s deduction of “reputation risk” factor from banking control can be considered as a development that prepares the ground for the growth of financial innovation in the USA and the adoption of new digital solutions. It is aimed to standardize the risk assessment processes of banks and to ensure between sectors. This change may pave the way for financial practices and technological progress associated with crypto assets in the USA. In terms of banks and customers, increasing access to digital financial products is among the policy objectives.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
