Texas Announces Government Chartered Banks Can Offer Cryptocurrency Custody Services

The Texas Banking Department has announced that state-chartered banks can provide crypto custody services. “The Texas Banking Department believes that the authority to provide these services in relation to virtual currencies already exists,” the banking authority said. Said. State of Texas Charter Banks Are Officially Authorized to Offer Crypto Custody Services. has adequate protocols to effectively manage risks and comply with applicable laws. While the custody and custody of virtual currencies will necessarily differ from those associated with more traditional assets, the Texas Banking Department believes that the authority to provide these services in relation to virtual currencies already exists under the Texas Finance Act. § 32,001". The clarification was clarified. The banking authority explained that each bank will choose which crypto custody services to offer based on its own expertise, risk appetite and business model. For example, the bank can allow customers to have direct control over it. It uses its own cryptocurrencies and only maintains copies of private keys associated with coins. Alternatively, the bank can take control of customers' cryptocurrencies and generate new private keys that it will hold on behalf of customers. services may be provided by a state-chartered Texas bank in a trustee or non-trustee capacity.As a bank trustee If it offers custody services, it will have the authority to manage customers' cryptocurrencies, just like any other type of asset. Such a capacity. For a bank to offer cryptocurrency services, management must do its due diligence and deal with off-offs. The city needs to carefully examine the risks. presents a new product."

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