US Regulators Clarify Banks’ Cryptocurrency Permissions

2021-11-25 00:1880119

Source: Decrypt

The Office of the Comptroller of the Currency (OCC) today published a letter instructing banks and federal savings associations that they must demonstrate adequate controls prior to engaging in crypto-related activities. 

“Today’s letter reaffirms the primacy of safety and soundness. Providing this clarity will help ensure that these cryptocurrency, distributed ledger, and stablecoin activities will be conducted by national banks and federal savings associations in a safe and sound manner,” said Michael J. Hsu, Acting Comptroller. 

“Because many of these technologies and products present novel risks, banks must be able to demonstrate that they have appropriate risk management systems and controls in place to conduct them safely,” Hsu added. 

The letter provides a degree of regulatory clarity for banks and federal savings associations insofar as they can refer to their relevant supervisory office to provide notice that they intend to carry out crypto-related activities. 

In turn, the proposed activity can then be reviewed and, potentially, permission to carry out said activities can be granted. 

The international view on cryptocurrency

The OCC’s letter strikes a similar tone to that of international regulators who have assessed the crypto industry as it pertains to banking. 

IOSCO securities regulators and the Bank for International Settlements recently said in a report that stable coins must be subject to the same rules as traditional payments. 

“This report marks significant progress in understanding the implications of stablecoin arrangements for the financial system and providing clear and practical guidance on the standards they need to maintain its integrity,” IOSCO chair Ashley Adler said in a statement. 

The Bank for International Settlements also said this year that banks must set aside sufficient capital to cover any losses they may suffer over any crypto asset holdings.

Likes 0
Favorite
Declaration: This article is published with the authorization. And it can't represent FTFTX's standpoint. Please note the source of article if it is reprinted: www.ftftx.com
All Comments(3)
Publish

Crew Member

Crew Member

Awesome

11-25 00:25

0N1

0N1

When everyone starts to waver and is not optimistic, it is the time to buy

11-25 00:22

Rickstro Bull

Rickstro Bull

I'm short-selling, and all my net worth is overwhelmed, right?

11-25 00:18
No More
Hot

BRD Wallet and Unbound Security — Coinbase Acquires 2 Companies in Less Than a Week

1BRD Wallet and Unbound Security — Coinbase Acquires 2 Companies in Less Than a Week

The publicly-listed crypto-asset exchange Coinbase has announced the company has acquired the Israeli firm Unbound Security. The announcement follows Coinbase acquiring the cryptocurrency wallet BRD last week and the Unbound acquisition is aimed at the company’s “commitment to providing the safest, most secure, and most trusted venue for anyone to interact with the [crypto economy].” What do you think about Coinbase acquiring Unbound Security and the acquisition of BRD last week? Let us know what you think about this subject in the comments section below. Disclaimer

2021-12-01 13:35 | Bitcoin.com53820

Fidelity Launches a Spot Bitcoin ETF in Canada

2021-12-01 15:28 | CryptoPotato21224

FTFTX APP DownloadUse
iOS 9.0 and above
Android 4.3 and above

Feedback
Back