The three major U.S. regulatory agencies jointly speak out! Clarifying the applicable regulations for 'banks engaging in cryptocurrency custody'

On July 14, the three major banking regulators in the U.S. jointly issued a statement clarifying the regulatory principles applicable to banks in the business of 'holding cryptocurrency on behalf of clients,' warning banks that when providing cryptocurrency custody, they must adhere to sound business practices, carefully assess risks, and act in accordance with the law.

The Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) emphasized in a statement on Monday that this announcement does not introduce any new regulatory requirements, but rather reaffirms the applicable logic under the current regulatory framework, allowing banks to have clearer guidelines when engaging in cryptocurrency custody.

The statement indicates that if banks intend to engage in cryptocurrency custody services, they must treat it equally with other new products and services, implementing comprehensive risk assessments and internal control mechanisms, especially ensuring the maintenance of information security, private key management, and personal data protection measures. The statement emphasizes:

Banks considering providing cryptocurrency custody services should fully assess the evolving nature of the cryptocurrency market, including the technology behind cryptocurrencies, and implement a risk management framework that adapts to the associated risks.

Since Donald Trump returned to the White House, American financial regulatory agencies have frequently issued statements and clarifications in recent months, clarifying the compliance path and responsibilities of banks and other financial institutions involved in the cryptocurrency industry.

For example, the OCC clearly stated in May this year that it allows American banks to buy and sell cryptocurrency based on their own needs; the FDIC has also officially relaxed past restrictions, allowing financial institutions to engage in cryptocurrency business without prior notice to regulatory authorities, sending a more friendly signal to the market.

"The three major U.S. regulatory agencies jointly speak out! Clarifying the applicable regulations for 'banks engaging in cryptocurrency custody'" This article was first published on (Blockcast).