The office of the currency controller (Occ) has issued new indications confirming that national banks and federal savings associations can engage in custody of cryptocurrencies and trading services. This clarification comes in the interpretative letter 1184, which outlines that banks can buy and sell digital activities held in custody in the direction of their customers and can also outsource the activities relating to cryptocurrencies, such as custody and execution services, to third parties. However, banks must guarantee that they implement the risk of the risk of adequate third parties.
This decision is important as the OCC guide allows banks to participate more actively in the rapid -growing cryptocurrency market, which now includes over 50 million Americans. The updated rules of the OCC are part of its continuous efforts to ensure that banks can work responsible in emerging financial technologies in an emerging financial technologies by protecting consumers and respecting applicable laws.
Rodney Hood, the currency acting controller, underlined in the video that “this digitization of financial services is not a trend. It is a transformation”. He also explained that regulatory banks can provide custodial services, including custody and safe storage of Bitcoin and other digital activities, on behalf of their customers. In addition, “the banks we supervise can also buy and sell cryptocurrencies they keep in custody in the direction of their customers”.
The letter also states that banks can provide other important services, such as the keeping of registers, tax relationships and conformity services. The OP has also clarified that banks can use sub-bustodes to provide these services, but only “subject to the risk management practices of the appropriate third parties”.
Rodney Hood also stressed that “while a series of cryptocurrency activities and digital activities can be performed by banks and their third parties, I want to be clear that the OV expects these activities to be conducted safely and validly and in accordance with the applicable law”.
The clarification from the OCC is significant as it offers banks the ability to satisfy the growing demand for cryptocurrency related services, while guaranteeing safety and respecting regulatory standards. In the video, Hood stressed that the digital shift is not only changing the way people engage with money, but transform the entire financial landscape.
For banks, this offers the opportunity to expand their offers by providing services relating to digital activities in addition to traditional financial services. As Hood pointed out, regulated banks can now help customers manage their cryptographic wallets just as traditional goods would do, with services such as tax reports and transactions.
However, banks must make sure to manage the risks involved in the custody of cryptocurrencies. The emphasis of the OCC on “safe and solid” operations means that any cryptographic activity must be carried out safely and in full compliance with the law.
This guide updated by the OPP marks an important step to integrate digital resources into the regulated financial system. With these clear rules in place, national banks are better positioned to serve customers, while guaranteeing that the activities relating to cryptocurrencies are conducted in a responsible and safe way. For more information, visit here.