The Currency Observer Office (OCC) released New instructions Confirming that national banks and federal societies for savings can be involved in custody and trading services of encrypted assets. This clarification comes in the interpretation Message 1184Which shows that banks may buy and sell digital assets held in the direction of their customers, and may also be able to use external sources of encryption activities, such as custody and implementation services, to third parties. However, banks must ensure the implementation of the appropriate third -party risk management practices.
This decision is important because OCC guidance enables banks to participate more active in the fast -growing currency market, which now includes more than 50 million Americans. The updated OCC rules are part of their ongoing efforts to ensure that banks can engage in responsibility in the emerging financial technologies while protecting consumers and compliance with the laws in force.
“This digitization of financial services is not a trend. It is a transformation,” said Rodney Hood, an observer on behalf of the currency. He also explained that the regulation banks can provide nursery services, including maintaining and securing storage from bitcoin and other digital assets, on behalf of their customers. In addition, “the banks that we can also have to buy and sell the cryptocurrencies they are holding in the direction of their client.”
The message also states that banks can provide other important services, such as saving notebooks, reporting taxes, and compliance services. OCC also explained that banks may use sub -thick specialists to provide these services, but only “are subject to risk management practices from the third party.”
Rodney Hood also stressed that “while a group of cryptocurrencies and digital asset activities may be implemented by banks and their third parties, I want to be clear that OCC expects these activities to take place in a safe and sound way and in compliance with the applicable law.”
The clarification of OCC is important because it gives banks the ability to meet the increasing demand for services related to encrypted currency while ensuring security and compliance with regulatory standards. In the video, Hood emphasized that the digital transformation not only changes the way people deal with money, but to transfer the entire financial scene.
For banks, this provides an opportunity to expand their offers by providing services related to digital assets in addition to traditional financial services. As Hood pointed out, the organized banks can now help customers to manage their encrypted governorates just as traditional assets do, with services such as tax reports and transaction registration.
However, banks must make sure to manage the risks involved in coding nursery. The focus of OCC on “safe and sound” operations means that any activity associated with encryption must be carried out safely and with a complete compliance with the law.
This updated directive from OCC represents an important step in integrating digital assets into the organized financial system. With these clear rules, national banks are in a better position to serve customers while ensuring responsibility and safety encryption activities. For more information, please visit here.
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