Cryptocurrency market update: Switzerland’s Basel Committee on Banking Supervision warned crypto posses’ risks to banks and global financial stability
|- A warning put out by Swiss financial body, Basic Committee on cryptocurrencies.
- The committee said potential risks are posted to banks; liquidity, credit and market risks, operational risk (including fraud and cyber risks), money laundering and terrorist financing risk, and legal and reputational risks.
The Basel Committee on Banking Supervision, in Switzerland were commenting on the risks that cryptocurrency pose to banks and general global financial stability. They are a group of international banking authorities.
The group has largely considered that there are potential risks for banks such as; liquidity, credit and market risks, operational risk (including fraud and cyber risks), money laundering and terrorist financing risk, and legal and reputational risks.
They did further noted that presently banks have a “very limited” direct exposure to cryptocurrencies, institutions should still “at a minimum” ensure great due diligence is carried out. Finally noting that they should disclose any exposure to crypto assets to minimize the risks.
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