US Federal Reserve Board Issues Policy Statement That Limits Banks' Crypto Related Activities – Regulation Bitcoin News

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US Federal Reserve Board Issues Policy Statement That Limits Banks' Crypto Related Activities – Regulation Bitcoin News
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The board is not only attempting to 'promote a level playing field' but is also seeking to 'limit regulatory arbitrage.' digitalassets regulation

The United States Federal Reserve Board has issued a new policy statement which says that both insured and uninsured banks under its supervision will be subjected to the “same limitations on activities, including novel banking activities, such as crypto-asset-related activities.”also clarifies that the institutions will be subjected to the limitations “on certain activities” which fall under the auspices of the Office of the Comptroller of the Currency .

The policy statement, which becomes effective upon publication in the Federal Register, implores banks to ensure that their activities are above board and are conducted “in a safe and sound manner.” This can be achieved by having risk management processes in place, internal controls, as well as information systems.

In recent years, the Board has received a number of inquiries, notifications, and proposals from banks regarding potential engagement in novel and unprecedented activities, including those involving crypto-assets. In response, the Board’s statement specifies how it will evaluate such inquiries, consistent with longstanding practice.

Meanwhile, the statement clarified that the board’s latest action does not, however, preclude a state member bank or prospective applicant from providing crypto-assets safekeeping services. This is only permissible when “conducted in a safe and sound manner and in compliance with consumer, anti-money laundering, and anti-terrorist financing laws.”

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

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