×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: federal reserve governor christoper waller cryptocurrency warning

Cryptocurrency Investors Could Lose All Their Money: Fed's Waller

Cryptocurrency Investors Could Lose All Their Money: Fed's Waller
Federal Reserve Governor Christopher Waller (AP)

Friday, 10 February 2023 01:36 PM EST

Federal Reserve Governor Christopher Waller on Friday had a pair of warnings for those involved in cryptocurrency assets, telling buyers they could lose their investments, and banks that they must guard against bad actors and risks to the financial system.

In recent months the cryptocurrency industry has been roiled by massive losses for investors, bankruptcies of crypto exchanges, lenders and payment platforms, and high-profile court cases including a criminal case against FTX founder Sam Bankman-Fried. U.S. regulators including the U.S. central bank have told banks they need to be more careful about fraud risk.

In remarks prepared for delivery to a Global Interdependence Center conference, Waller said so far the spillover to the broader financial system has been "minimal," and it is critical that regulators make sure to mitigate financial stability risks associated with stress in the crypto industry.

At the same time, he said, banks considering engagement in cryptocurrency must meet "know your customer" and anti-money laundering requirements, and must ensure they monitor customers' business models and risk-management systems so that the bank is "not left holding the bag" if there is a crypto meltdown

Waller had an even starker warning for traders of cryptocurrency: as assets that have no intrinsic value, cryptocurrencies are risky.

"If people want to hold such an asset, then go for it," Waller said. "However, if you buy crypto assets and the price goes to zero at some point, please don't be surprised and don't expect taxpayers to socialize your losses."

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
Federal Reserve Governor Christopher Waller on Friday had a pair of warnings for those involved in cryptocurrency assets, telling buyers they could lose their investments, and banks that they must guard against bad actors and risks to the financial system.
federal reserve governor christoper waller cryptocurrency warning
247
2023-36-10
Friday, 10 February 2023 01:36 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved