US supervisory authorities define crypto custody rules for banks
The US banking supervisors have created new clarity about how financial institutions should avoid the custody of cryptocurrencies.
The Federal Reserve, the FDIC and the OCC have one together Explanation Published in which you explain how the applicable regulations are to be applied when banks protect digital assets on behalf of customers.
Instead of introducing new rules, the authorities confirmed that existing regulations already cover crypto -related services. They emphasized that banks have to treat the custody of cryptocurrencies like any other financial product – with appropriate supervision and risk control.
Focus on security and governance
Institutes that want to offer the custody of cryptocurrencies must give priority to security from the start. This includes the management of private keys, the protection of sensitive customer data and protection against cyber threats.
Officials emphasized the importance of building governance systems that adapt to the rapidly changing crypto landscape. The technologies in this area develop quickly, and the risk frames have to keep pace.
Risks of the cryptom market remain a main concern
The supervisory authorities asked the banks to understand the special challenges that bring digital assets with them. They asked the institutes to evaluate the operational, legal and technological risks before the introduction of crypto services.
The joint explanation is part of a growing list of regulatory efforts that aim to establish a balance between innovation and financial stability in the digital economy.
