Federal banking regulators in the US have officially allowed banks to offer custody services for Bitcoin and other cryptocurrencies. This decision marks a significant development in the regulated access of financial institutions to crypto assets.
Regulators Allow Cryptocurrency Custody
The Federal Reserve, OCC, and FDIC issued a joint statement confirming that banks can offer safekeeping of crypto assets under existing laws. This decision does not introduce new rules but reinforces existing compliance obligations.
Requirements for Security and Compliance
Banks must ensure compliance with all requirements, including strong cybersecurity measures, operational readiness, and internal controls. Key management of cryptographic keys is emphasized as a key custody responsibility.
Bank Accountability with Sub-Custodians
Regulators allow banks to work with third-party sub-custodians, but banks remain fully responsible for their actions. They must conduct due diligence, including evaluating policies and compliance with safekeeping standards.
The recent decision by federal regulators opens new opportunities for banks in the cryptocurrency custody space, requiring strict adherence to existing security and risk management standards.
