UniCredit Warns Europe May Struggle With Crypto-Banking Contagion Compared to US

Europe’s Response to Crypto-Banking Risks Compared to the United States

Background: The Silicon Valley Bank Crisis and Crypto Market Impact

MILAN, May 28 (Reuters) – Europe may struggle to respond to risks from links between crypto assets and banks in the way U.S. authorities contained damage during the 2023 Silicon Valley Bank (SVB) crisis, the deputy vice chair of Italian bank UniCredit said.

The collapse of SVB rattled crypto markets as it held deposits backing some crypto firms, destabilising a major stablecoin and sparking a wave of redemptions. The shock spilled over into the broader banking system, contributing to the failure of Signature…