On Thursday, May 25, a European Union watchdog urged EU authorities to ban leveraged bets on crypto assets by establishing limitations for investment funds, cryptocurrency exchanges, and other enterprises to prevent shocks in that market from endangering financial stability elsewhere.
It was one of the European Systemic Risk Board’s (ERSB) many suggestions, which also included requiring periodic reporting from all organizations working with crypto assets and instituting new regulations for the industry’s major enterprises in its report.
It comes after a difficult 18 months for the sector, during which Bitcoin’s (BTC) price plunged over 70%, the cryptocurrency Luna collapsed, and the exchange FTX went from purchasing Super Bowl commercials to filing for bankruptcy.
The ESRB said in a report: “Systemic risks could arise quickly and suddenly. If the rapid growth trends observed in recent years were to continue, crypto-assets could pose risks to financial stability.”
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We współpracy z: https://finbold.com/eu-watchdog-warns-cryptocurrencies-could-pose-risks-to-financial-stability/
