THELOGICALINDIAN - The OCC has absitively that US banks are accustomed to accommodate crypto accumulator and safekeeping
Banks are accustomed to serve as Bitcoin custodians, according to the U.S. Office of the Comptroller of the Currency (OCC).
Though the OCC’s admonition is addressed to a specific bank, the office’s letter “reaffirms” its accepted position on the matter.
Banks Can Store Crypto Keys
Institutional investors are appropriate to abundance their assets with able custodians, who charge accept by specific rules.
According to the OCC, banks can act as crypto custodians “by captivation the different cryptographic keys” acclimated to admission cryptocurrency. The OCC’s cardinal considers key accumulator agnate to the administration of concrete objects, a convenance that is already allowed.
The letter additionally states that banks can accommodate cyberbanking casework to “any allowable business they choose,” including cryptocurrency businesses.
Naturally, banks charge accept by bounded and accompaniment laws as able-bodied as advance practices tailored to cryptocurrency storage.
Why Bitcoin Custody Matters
The OCC suggests that there is a “growing appeal for safe places” in which all-embracing investors can abundance their cryptocurrency keys.
Custodians accommodate institution-grade aegis and aegis for ample amounts of assets. Though accepted crypto investors should authority cryptocurrency in their non-custodial wallet, beyond investors may charge added circuitous accumulator and services.
As the OCC notes, advance admiral may charge to admission their customers’ crypto assets directly, in which case a careful coffer is a alive advantage for crypto storage. Furthermore, investors may adopt managed aegis instead of offline “cold storage.”
The OCC and Crypto
Today’s advertisement could acquiesce acceptable banks to booty business abroad from crypto firms such as Coinbase Aegis and Bakkt, which accept historically provided crypto aegis services.
However, industry affect is friendly: leaders at crypto companies accept commented agreeably on the news. Anchorage has alleged the OCC’s accommodation a “positive development,” while Gemini has alleged the cardinal a “forward-thinking announcement.”
Part of the absolute affect may appear from the OCC’s crypto-friendly stance. Since 2016, the regulator has been advancing a Federal Fintech Charter, which would accomplish it easier for crypto companies to accomplish alongside acceptable banks.
Incidentally, the OCC is headed by Brian Brooks, a above Coinbase executive—a affiliation that suggests the government anatomy is on acceptable agreement with the crypto industry.
