The US Bank Regulator Gives Warning Regarding Cryptocurrency


Cryptocurrency is becoming a trend in various regions of the world. However, the public needs to remain vigilant. The United States Bank Regulator even issued a warning about cryptocurrencies.

This warning was delivered after the collapse of the cryptocurrency exchange platform, FTX.

According to a joint statement from the Federal Reserve, Federal Deposit Insurance Corp, and the Office of the Comptroller of Currency, digital currency is a cause for concern. Because it is shrouded in the possibility of fraud and misappropriation.

This warning, according to the three institutions, was also accompanied by the volatility of the currency which then made it quite vulnerable.

During the recent crypto boom, bank executives said they needed further guidance from regulators before dealing more directly with bitcoin and other cryptocurrencies in retail and institutional trading businesses.

Now, about two months after FTX’s bankruptcy filing, the industry has been exposed full of poor risk management, interconnected risks, and outright fraud.

While the statement indicates that regulators are still assessing how banks can adopt cryptocurrencies while complying with their various mandates for consumer protection and anti-money laundering.

“Based on the institution’s current understanding and experience, the institution believes that issuing or holding as primary crypto assets issued, stored, or transferred on open, public, and/or decentralized networks or similar systems is likely to be inconsistent with secure banking practices. and healthy,” said the three regulators.

“We have significant safety and health concerns” with banks that are focused on crypto clients or that have concentrated exposure to the sector,” he added.

On the other hand, the Government of Indonesia has pocketed a total of IDR 456.49 billion from taxes levied on crypto asset transactions and fintech-peer-to-peer (P2P) lending or online loans during June-December 2022.

Finance Minister Sri Mulyani Indrawati said state revenue from fintech-P2P lending taxes was recorded at IDR 210.04 billion and IDR 246.45 billion from crypto taxes. The tax imposition of both of them has been in effect since May 2022, but the tax deposit will only start in June 2022.

In detail, state revenue from fintech-P2P lending taxes amounting to IDR 210.04 billion, consisting of income tax (PPh) 23 on loan interest of IDR 121.84 billion and PPh 26 on loan interest of IDR 88.20 billion.