OCC Points Steering Permitting Banks To Present Bitcoin Custody and Buying and selling Providers

The Workplace of the Comptroller of the Forex (OCC) has launched steerage stating that nationwide banks and federal financial savings associations are permitted to supply custody and buying and selling providers for digital property equivalent to Bitcoin.

Interpretive Letter 1184 clarifies that banks are permitted to purchase and promote digital property on behalf of consumers and will outsource associated providers—equivalent to custody and execution—to third-party suppliers, topic to applicable danger administration oversight.

The steerage is a part of the OCC’s broader regulatory efforts to make clear the scope of actions banks can undertake in relation to rising monetary applied sciences. 

In line with the letter, monetary establishments may additionally present associated providers, together with recordkeeping, tax reporting, and compliance. 

These providers could also be delegated to sub-custodians, supplied that oversight necessities are met.

In a video assertion, Appearing Comptroller of the Forex Rodney Hood mentioned, “this digitalization of economic providers isn’t a development. It’s a transformation.”

He famous that banks are allowed to supply custody for digital property and that “the banks we supervise additionally might purchase and promote cryptocurrencies they maintain in custody at their buyer’s route.”

Hood additionally said, “whereas a spread of cryptocurrency and digital asset actions could also be carried out by banks and their third events, I wish to be clear that the OCC expects these actions to be carried out in a protected and sound method and in compliance with relevant regulation.”

The steerage gives a regulatory framework for banks eager about providing Bitcoin and crypto-related providers whereas sustaining compliance with federal banking requirements. 

Establishments selecting to interact in these actions are anticipated to implement applicable danger controls and comply with current authorized and supervisory expectations.

The OCC’s assertion doesn’t mandate banks to take part in Bitcoin and digital asset providers, however it clarifies what’s permissible underneath present regulation. 

Establishments might decide whether or not and have interaction based mostly on their enterprise fashions, capabilities, and danger assessments.