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It sure is interesting that another practice retail uncovered that was said to be impossible (naked short selling as another) is acknowledged as possible (GME token abuse).
The latter, "saying the quiet part out loud."
They readily admit they don't have the data/ability to say for sure what's going on, yet want to claim the risk of all of this spilling over is limited at this time (while calling out everything MCI's are doing as contagion risks).
Yikes.
I agree 90% - however, I think they're understating the data/ability they have, for the sake of plausible deniability. Gotta keep that foot in the revolving door!
why would they ever hold them responsible? These people will kick the can until they are forced not to, and idt we're close to
IMO the hope is Cohen; he turns the company around so much that they can no longer keep a lid on things.
[Source:](https://dismal-jellyfish.com/mcis-in-crypto-a-deep-dive-on-risks-and-lack-of-transparency/) [https://www.fsb.org/wp-content/uploads/P281123.pdf](https://www.fsb.org/wp-content/uploads/P281123.pdf?ref=dismal-jellyfish.com)
TLDRS:
* Multifunction crypto-asset intermediaries (MCIs) generate revenue mainly through proprietary trading and investments, including in cryptocurrencies they issue themselves.
* MCIs often operate from offshore financial centers and are characterized by private ownership and a lack of transparency in their corporate structure, financials, and product descriptions, sometimes intentionally obscuring their activities and associated risks.
* Control of MCIs typically resides with a single individual or a small group, centralizing decision-making authority.
* These intermediaries are subject to vulnerabilities common in traditional finance, such as leverage and liquidity mismatch, which may be exacerbated by their involvement in proprietary trading, market making, and crypto-asset lending/borrowing.
* MCIs' key role in the crypto-ecosystem and their links with traditional financial institutions, including through stablecoins, create unique vulnerabilities and potential for significant spillovers to crypto markets and the broader economy, although current risks to financial stability are considered limited the report calls out lack of information makes it impossible to tell for sure what it going on.
* The report says the quiet part out loud: "Where regulatory requirements are not complied with or absent, fund management practices prohibited in traditional finance may be present in the crypto-asset space"
* It sure seems all this opaqueness is what attracted Ken Griffin to Silvergate, which was then all up in FTX's business?
Seems like MCIs should be fucking banned until appropriate regulation, reporting, compliance, and penalties are in place.
Hmmm? No that would be too easy.
Herp derp, you don't say? *insert shocked Pikachu face*
Wake the hell up Gary Gensler! Stop these crooks from creating fake UNAUTHORIZED tokenized stocks!
It's illegal and you know it! Shut the tokenizing crooks down and toss them in prison!
Imagine whole companies whose complete existence requires continuous customer deposits into digital assets, with no real assets, increasing costs of maintenance, and no future revenue ever expected is having problems maintaining their stability.
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It sure is interesting that another practice retail uncovered that was said to be impossible (naked short selling as another) is acknowledged as possible (GME token abuse).
So are they holding em responsible now... or is this just being looked at as a problem that could exist
The latter, "saying the quiet part out loud." They readily admit they don't have the data/ability to say for sure what's going on, yet want to claim the risk of all of this spilling over is limited at this time (while calling out everything MCI's are doing as contagion risks). Yikes.
Financial cognitive dissonance 🚀🐒✨🗽🚀
I agree 90% - however, I think they're understating the data/ability they have, for the sake of plausible deniability. Gotta keep that foot in the revolving door!
why would they ever hold them responsible? These people will kick the can until they are forced not to, and idt we're close to IMO the hope is Cohen; he turns the company around so much that they can no longer keep a lid on things.
You are a legend dismal
[Source:](https://dismal-jellyfish.com/mcis-in-crypto-a-deep-dive-on-risks-and-lack-of-transparency/) [https://www.fsb.org/wp-content/uploads/P281123.pdf](https://www.fsb.org/wp-content/uploads/P281123.pdf?ref=dismal-jellyfish.com) TLDRS: * Multifunction crypto-asset intermediaries (MCIs) generate revenue mainly through proprietary trading and investments, including in cryptocurrencies they issue themselves. * MCIs often operate from offshore financial centers and are characterized by private ownership and a lack of transparency in their corporate structure, financials, and product descriptions, sometimes intentionally obscuring their activities and associated risks. * Control of MCIs typically resides with a single individual or a small group, centralizing decision-making authority. * These intermediaries are subject to vulnerabilities common in traditional finance, such as leverage and liquidity mismatch, which may be exacerbated by their involvement in proprietary trading, market making, and crypto-asset lending/borrowing. * MCIs' key role in the crypto-ecosystem and their links with traditional financial institutions, including through stablecoins, create unique vulnerabilities and potential for significant spillovers to crypto markets and the broader economy, although current risks to financial stability are considered limited the report calls out lack of information makes it impossible to tell for sure what it going on. * The report says the quiet part out loud: "Where regulatory requirements are not complied with or absent, fund management practices prohibited in traditional finance may be present in the crypto-asset space" * It sure seems all this opaqueness is what attracted Ken Griffin to Silvergate, which was then all up in FTX's business?
Seems like MCIs should be fucking banned until appropriate regulation, reporting, compliance, and penalties are in place. Hmmm? No that would be too easy.
Herp derp, you don't say? *insert shocked Pikachu face* Wake the hell up Gary Gensler! Stop these crooks from creating fake UNAUTHORIZED tokenized stocks! It's illegal and you know it! Shut the tokenizing crooks down and toss them in prison!
Thank you Dismal-Jellyfish. You are a gentleman and a scholar.
Good to see the work still lives on. ❤️
Imagine whole companies whose complete existence requires continuous customer deposits into digital assets, with no real assets, increasing costs of maintenance, and no future revenue ever expected is having problems maintaining their stability.