American Banks planning to start crypto offerings: Report
According to researchers, the majority of American banks are planning to bring their crypto services in the future soon.
13 years ago, Bitcoin took birth, and after that many people copied Bitcoin code to create separate crypto-assets like bitcoin. Now the whole journey has reached a situation where all the people are not restricted to buy and sell such kinds of assets through the P2P platform, they can avail buy-sell crypto assets services through centralized and trusted services. Due to the boom in the Crypto industry, the majority of people are moving to crypto and they are ignoring banks and the Stock market system.
Now, in this situation, competition arises for traditional financial services like Banks. Due to this competition, Banks are also entering into crypto to grab customers and user base for their services.
The majority of the banks are either establishing partnerships with third-party regulated crypto services or trying to integrate third-party crypto services internally. However, not all banks can do the same. But the last few months’ activities of US regulators are giving a clear hint that banks will have better rules to go with crypto.
A group of savings banks in Germany is reportedly testing a trading network that would allow 50 million customers to buy and sell Bitcoin, Ethereum and other crypto assets. Bank of New York Mellon and Fidelity are offering crypto services, now retail customers may also begin to change this year
FDIC on crypto guidelines for Banks
According to a report of Reuters, a top US regulator, Jelena McWilliams, the Federal Deposit Insurance Corporation (FDIC) explained how the Regulators in the US are working on the framework to give authority to the American banks to allow them to hold crypto assets.
Jelena McWilliams said that a group of regulators is working on this matter and they are trying to bring a better rule for these banks with better guidelines.
Jelena said:
“I think that we need to allow banks in this space, while appropriately managing and mitigating risk,” she said in an interview on the sidelines of a fintech conference.
She also said that, if we will not work on such things then these will develop outside the regulations and Banks coverage and that will terminate the role of the Federal to regulate it.
Jelena also confirmed that FDIC is working on this matter besides the work of the Federal Reserve and Office of the Comptroller of the Currency (OCC), to bring a more separate and precise set of rules for the banks, to bring a realm to enter in this space.
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