In a joint statement issued by three foreign federal government agencies, some people suggested that commercial banks do not have to establish a new risk control standard to deal with the liquidity risk caused by the vulnerability of the market for the sale of encrypted assets.

The Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC) and the Office of loan Engineering Supervisors (OCC) issued a statement reminding financial institutions to apply existing risk control standards when faced with liquidity risks associated with login passwords.

The joint statement sets out the key liquidity risks associated with bank organization encrypted assets and related participants. These risks show anxiety about the unpredictable scale and timing of savings inflows and outflows.

In other words, federal agencies have expressed concern that large-scale sales or purchases of assets will adversely affect the liquidity of assets-which may cause economic losses to investors.

Federal agencies highlight several examples of liquidity risks associated with encrypted money:

1. The security deposit stored by the entity line associated with the encrypted asset for the benefit of the physical customer (the last customer) associated with the encrypted asset.
2. The reserves related to crude oil constitute relatively stable savings.

First of all, price stability lies in the individual behavior of investors, which is easily affected by "work pressure, market changes and related vulnerabilities in the field of encrypted assets". The second type of risk is related to the requirement for a stable currency. The joint statement reads:

Such savings are likely to be vulnerable to large-scale, rapid capital outflows, such as unexpectedly smooth redemptions or chaotic markets for encrypted assets.

Although the three people allow, according to Chinese laws and regulations, "the banking business given by financial institutions will neither be strictly prohibited nor blocked", it proposes to actively detect liquidity risks. and develop and maintain reasonable risk control and control over encrypted public offerings.

This kind of institution shares four important practices of reasonable risk control with banks, as well as conducting strong financial due diligence and testing of landing password assets, including liquidity risk, and assessing the correlation between password products. and to master the direct and indirect drivers of savings potential violations.

On Jan. 3, the same three federal government agencies-the Federal Reserve meeting, FDIC and OCC---issued a joint statement outlining the eight risks in the cryptosystem, including fraud, uncertainty, contagion and the like.

The joint statement of these organizations:

"most importantly, the risks associated with encrypted asset units that cannot be mitigated and controlled are not easily transferred to banking."

This statement describes the probability of changing login password policies and regulations and refers to the "case-by-case approach adopted by agencies to date".