Leveraged Crypto Trading is a Threat to Financial System, Warns Bank of Korea
Earlier this week, head of South Korea’s central bank Lee Ju-yeol warned that leveraged crypto trading was a threat to the country’s financial system. “An excessive level of leveraged cryptocurrency trading puts households at risk of financial damages considering the instability of [crypto],” he said. We expect [the increasing amount of crypto trading] to have […]
Related News
Bank of England’s deputy governor for financial stability, Sir Jon Cunliffe, has warned that cryptocurrency is getting closer to posing a threat to global financial stability due to the sector’s rapid growth. Crypto is also being integrated into the traditional financial system at a rapid rate. He urges regulators to take action now. Bank of England’s Jon Cunliffe Warns Crypto Is Closer to Becoming a Threat to Global Financial Stability Sir Jon Cunliffe, Bank of England’s deputy governor for financial stability, talked about bitcoin and cryptocurrencies in....
The central bank of France - aptly named Bank of France - has issued a warning to the general public about the risks of getting involved with digital currency bitcoin. The bank has said that "even if bitcoin is not currently a credible investment vehicle and therefore do not pose a significant risk to financial stability, they represent a financial risk for those who hold them". In other words, you may lose all your money. Thankfully, the Bank of France (and the French government) haven't imposed any sort of regulation or bans (we're looking at you, China). It seems as if this is more of....
Bank of England's Sir Jon Cunliffe has urged British lawmakers to think “very hard” about the disruption integrating cryptocurrency with traditional finance could wreak. Sir Jon Cunliffe, the Deputy Governor for Financial Stability at the Bank of England (BoE) crypto may pose an imminent threat to the traditional financial system. During a Nov. 15 interview with the BBC’s “Today” program, Cunliffe argued that the rapid growth of digital assets and their integration with traditional financial services could soon pose systemic risks, stating: “[Cryptocurrencies] are growing very fast, and....
South Korea’s central bank is the latest entity seeking powers to monitor crypto trading activity in the country. The Bank of Korea reportedly has plans to maintain strict oversight on crypto trading activity via real-name bank accounts.According to a report by The Korea Herald on Thursday, the BOK is seeking authority under Article 87 of the country’s central bank Act, stating: “We plan to utilize our legal authority over requesting document submittal from financial institutions to monitor the volume of cryptocurrency transactions made through bank accounts.”The above comments are....
South Korea’s central bank has expressed caution over the potential consequences of issuing won-pegged crypto stablecoins, raising concerns that their adoption could inadvertently boost demand for US dollar-backed stablecoins. Bank of Korea (BOK) Governor Lee Chang-yong warned that such developments may undermine broader monetary policy goals and complicate foreign exchange management. Related Reading: Coinbase Introduces […]