The Federal Deposit Insurance Corporation (FICCO) has issued new indications that allow banks that supervise to engage in bitcoin and cryptocurrency activities without seeking pre-approval. This reverses a controversial policy imposed in the Biden administration.
In a declaration of March 28, the Fic has said that banks can now participate in cryptocurrency services such as custody and trading if they manage the risks correctly. The agency will also work to replace old regulations with updated cryptographic guide.
The modification of the policy has arrived in a new letter of financial institution that cancels the previous rules of 2022 that impose the banks to obtain the FDCO authorization before managing Bitcoin and Cryptocurute activities. That bureaucracy frustrated the banking industry.
By removing this barrier, the FDIC allows the supervised banks to experience this emerging ecosystem more freely. However, specific authorizations will however depend on the coordination of the inconvenience.
The acting of the president of the Ficis Travis Hill defined the move “one of the numerous steps” in presenting a new cryptographic approach focused on safety. He said: “The Fdic is shooting the page on the imperfect approach of the last three years”. The agency plans to issue further indications as it consults the president’s working group on digital resources.
The main banks have recently launched Bitcoin and cryptocurrency services despite unclear regulations. Providing regulatory clarity will allow to participate more banks.