Updated: 07/29/2020 04:56
Hyip Monitor
us national banks crypto custody
U.S. bank regulator gives permission to national banks and federal savings associations to provide custodial service
Sponsored Links
U.S. bank regulator gives permission to national banks and federal savings associations to provide custodial service

The Office of the Comptroller of the Currency (OCC), an independent bureau within the United States Department of the Treasury, has given the green light for U.S. national banks and federal savings associations to keep cryptographic wallet keys. The official announcement states that banks can provide more secure custody solutions than those available on the market, reports The Block.

The letter draws attention to existing OCC guidance, outlining “that banks may hold a wide variety of assets as custodians, including assets that are unique and hard to value. These custody activities often include assets that transfer electronically.”

Going further, the OCC notes: “Providing custody services for cryptocurrency falls within these longstanding authorities to engage in safekeeping and custody activities. As discussed below, this is a permissible form of a traditional banking activity that national banks are authorized to perform via electronic means. Providing such services is permissible in both non-fiduciary and fiduciary capacities. A bank that provides custody for cryptocurrency in a non-fiduciary capacity would essentially provide safekeeping for the cryptographic key that allows for control and transfer of the customer’s cryptocurrency.”

Brian Brooks, Acting Comptroller and former chief legal officer for crypto exchange Coinbase said in a statement that every entity, offering custodial services, should develop and implement proper internal mechanisms. He remarked “the opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”

About the author

Eric Marriam is a young writer. Even though he is not experienced he is able to make really high quality work. Eric is able to identify a problem people have and break it down, able to appeal to emotion through emotive writing, can change style of writing to cater to different audience. Eric Marriam is able to work creatively and effectively with staff and managers and despite his young age, he proved to be a clear and effective writer and speaker, committed to maintaining quality and efficiency, seeking for professional growth and development.
You May Also Like