Regulators reported some guidelines that seek to clarify whether the cryptocurrency-related activities that banking organizations do are legal. The OCC ordered the banks that it regulates to request permits to offer the custody of cryptocurrencies.
The control and supervision agencies of the US financial system recently announced some tasks that they will complete next year. All those activities involve regulations on the use and trade of Bitcoin (BTC) and other cryptocurrencies in the territory.
The Federal Reserve (Fed), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) reported several guidelines for 2022. Their primary objective is to provide greater clarity on whether some of the cryptocurrency-related activities that banking organizations do are legally permitted.
The document gives details about banking agencies that were approaching cryptocurrencies after concluding a previous study. It states that regulators considered that it was necessary to delve into several issues related to those assets.
They plan to examine the current regulations used by banks that provide services with Bitcoin and other cryptocurrencies. Besides, they will study in greater detail how banks should maintain the custody of cryptocurrencies.
Likewise, they will analyze what companies must do to help consumers conduct transactions with Bitcoin. They will also evaluate what capital and liquidity standards cryptocurrency secured loan services should have.
The OCC Requires Banks to Request Approval to Trade bitcoin
The OCC followed the roadmap launch with a new policy, ordering the banks it regulates to request permits to offer the custody of cryptocurrencies. Similarly, they must have prior approval to retain the US dollars deposited to back stablecoins and handle cryptocurrency transactions.
Lenders will also have to request a special permit and prove that they have enough risk controls. In that way, they can receive approval from the OCC, according to Bloomberg.
Regulatory agencies issued joint statements-days after Christopher Waller criticized the position of the Treasury Department on regulating stablecoins. The member of the Fed thinks that it is not beneficial that banks have priority in the issuance of those crypto assets. He stated that competition in the sector favors efficiency and provides users with easy terms.
The US Treasury Department had previously adhered to guidelines from the Financial Action Task Force (FATF). They also promised to continue leading efforts to regulate cryptocurrencies tied to another asset like the US dollar. For that reason, they published a document asking Congress to control stablecoins, prioritizing the mandatory identification of users operating with them.
Regulators from various countries have had Bitcoin and other cryptocurrencies in their sights for a long time. Stablecoins like Tether (USDT) are no exception since they belong to a parallel economy that escapes from those wanting to control everything.
Many governments around the world see Bitcoin and other cryptocurrencies as factors that lead to illicit activities. Although some studies indicate that fiat money contributes more to crime than crypto assets, regulators insist on tighter regulations.
By Alexander Salazar
