US regulators have issued their first-ever joint warning to banks over the risks associated with the cryptocurrency market.
The watchdogs told financial institutions to be wary of potential fraud, legal uncertainty, and misleading disclosures by digital asset firms.
The US Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency said they were closely monitoring the crypto activities of banking organizations.
The regulators also said that issuing or holding crypto tokens, which are stored on public, decentralised networks was highly likely to be inconsistent with safe and sound banking practices.