ECB says crypto assets represent risk to financial stability

The European Central Bank is ramping up its warnings of the crypto market, deflating further sentiment that has plagued the industry over the past six months. Flagship crypto Bitcoin (BTC-USD) slid another 4% to under the $29,000-level early Tuesday, adding to its 57% loss seen since a high of $67,802 recorded back in November. The latest warnings came as part of the ECB's Financial Stability Review following similar caution expressed by regulators in the U.K. and the U.S. Excerpt: "Investors have been able to handle the €1.3T fall in the market capitalization of unbacked crypto assets since November 2021 without any financial stability risks being incurred," the ECB said in its review. "However, at this rate, a point will be reached where unbacked crypto assets represent a risk to financial stability. Given the speed of crypto developments and the increasing risks, it is important to bring crypto assets into the regulatory perimeter and under supervision