BIS reports a 66% reduction in cryptocurrencies held by banks in 2022

According to the report, the overall exposure of financial institutions to the risk associated with digital assets increased by 30%

06.03.2023 - 09:00

312

2 min

What’s new? According to a study by the Bank for International Settlements (BIS), financial institutions around the world have reduced the volume of cryptocurrency assets held from $3,19 billion in 2021 to $1,06 in 2022, Seeking Alpha reports. The drop coincided with a market downturn caused by a series of high-profile failures and bankruptcies, including blockchain ecosystem Terra in May and the FTX exchange in November.

Seeking Alpha’s material

What else does the publication report? Banks’ total exposure to the risk associated with cryptocurrencies rose by 30% from a year ago to $3,1 billion.

In February, the ECB urged banks to limit BTC ownership before global regulations took effect and to treat crypto assets as risky. And US banks began refusing to do business with crypto companies because of regulatory measures. Metropolitan Commercial Bank closes its crypto business, Signature Bank cut ties with the Binance exchange.

British banks tightened restrictions on retail customers’ access to cryptocurrencies, setting limits on purchases by debit cards and banning payments by credit cards.

Author: