ECB: Crypto growth poses risks to financial stability if it continues

05/24 09:55

The ECB's article "Deciphering Financial Stability Risks in Crypto Asset Markets" points out that despite the risks in crypto markets, investor demand for crypto assets has been increasing. If the crypto asset market continues to grow rapidly, crypto assets will pose risks to financial stability. Systemic risk increases with the degree of interconnectedness between the financial sector and crypto asset markets, the use of leverage, and lending activities. Regulators need to keep an eye on developments and close the regulatory gap.
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