FSB warns of spillovers from ‘multifunction’ crypto firms
High risks and poor governance in crypto sector could impact traditional finance, report says
Firms combining many different crypto activities often suffer from poor governance and their failures could cause major spillovers, the Financial Stability Board (FSB) warns.
Such firms display vulnerabilities such as leverage and liquidity mismatch that are familiar from the traditional financial sector, the FSB says. However, they often have weak controls and opaque governance. “Vulnerabilities could spill over to the traditional financial system and the economy through various transmission
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