March 29, 2024

U.S. banks allowed to provide cryptocurrency storage services

U.S. banks allowed to provide cryptocurrency storage services

The Office of the Comptroller of the United States has allowed all national banks to provide custody services for digital assets.

The open letter states that for the new type of deposits, banks canuse cryptocurrency wallets withunique cryptographic keys. Organizations can provide similar services to individuals and legal entities, including cryptoindustry companies, subject to legal compliance and an effective risk management system.

The regulator believes that banks can offerservices for investors with a higher level of security compared to products currently on the market. In doing so, consumers will have confidence that the regulated entity does not lose private keys.

In a letter from the Office of the Comptrollerappeals also say that financial markets are becoming more technological, and over time, the demand for innovative products will only increase. Therefore, banks already now need to understand and start working with a new class of assets to work out risk management mechanisms and adjust their strategic development plans.

Financial institutions will find it easier to comply with AML/CFT standards for crypto payments as ING recently developed a protocol to track the movement of digital assets.

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