New stance sets a higher standard for US banks when it comes to some crypto activities (Representative)
Washington:
U.S. banks must seek and obtain written permission from their banking supervisor before engaging in certain crypto-related activities, a major regulator said on Tuesday. .
The Office of the Comptroller of the Currency said banks must be able to demonstrate they have the proper risk management tools in place before undertaking activities such as providing custodial services for crypto holdings. of cutomer.
Because many of these technologies and products present new risks, banks must be able to demonstrate that they have the appropriate risk management systems and controls in place to implement them safely. secure,” editorial director Michael Hsu said in a statement.
The new stance from the regulator places higher requirements on banks looking into certain crypto activities, after the agency under former President Donald Trump cleared the way for banks to participate in a number of crypto activities.
According to the new explanatory letter, banks are not allowed to engage in certain crypto-related activities, such as providing custody of crypto assets and using deposits and reserves in dollars. la to support “stablecoins”, without informing their bank supervisor of their intention to engage in such activity in advance.
Supervisors would then review the banks’ risk management tools and systems and only authorize operations if banks demonstrate that they can do so in a safe and sound manner.
A separate joint statement from the Federal Reserve, Federal Deposit Insurance Corporation and OCC issued Tuesday said banking regulators intend to clarify by 2022 the role of banks Traditional goods can legally play in the cryptocurrency market.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
