The U.S. began to demand information from banks on operations with cryptocurrency

The U.S. Federal Deposit Insurance Corporation (FDIC) notified banks of new rules. Financial institutions must now warn about all cryptocurrency transactions.

The regulator said in a statement that because of potential systemic risks, any company or bank that has the ability to engage in cryptocurrency activities must disclose their plans, and any institution conducting crypto transactions must notify the FDIC “immediately.”

Reuters explains that regulators are taking into account the growing popularity of cryptocurrencies and its impact on security. Joe Biden has already instructed government agencies to assess the risks and benefits associated with cryptocurrencies. Such a move is seen as a clear recognition of the potential consequences of the growing importance of digital assets.

According to the regulator, a disruption in the transactions or activity of crypto-assets could confuse customers, causing “raids” on firms’ financial assets.

FDIC-monitored companies must now provide detailed information about planned activity and proposed transaction timelines. The agency plans to review such information for safety and soundness, financial stability and consumer protection.