In the US, banks will need to obtain written permission before engaging in certain activities involving cryptocurrency.
In a statement from the OCC, it was stated that banks should be able to demonstrate that they have appropriate risk management systems and controls before customers can engage in activities such as providing custody services for crypto assets.
The statement noted that banks will need to notify their supervisory authorities of their intention and obtain written permission before engaging in certain cryptocurrencies, distributed ledgers, and stablecoins. While not providing details, the agencies said the rapid growth of cryptocurrency presents “potential opportunities and risks” for traditional banks.
The US Federal Reserve, Federal Deposit Insurance Corporation, and the OCC also released a joint statement on Tuesday offering a roadmap for future work on crypto assets.
In the joint statement of the regulators, it was noted that it is planned to provide more clarity next year on which activities of banks in the cryptocurrency market will be legally permitted. Officials from the agency have been examining the dangers that banks face when engaging in crypto activity and if existing regulations need to be revised to account for it.