Texas state banks can now offer virtual currency custody services to their customers

The Texas banking industry said in a statement that state-chartered Texas banks can now provide virtual currency custody services to their customers. The notice, released on June 10, requires banks to maintain efficient protocols and maintain a strong service provider oversight program that addresses risk. State-chartered banks in Texas claim they are authorized to provide customers with a range of asset custody services under Texas Finance Code § 32.001, meaning they are authorized to provide these services for crypto assets. “Texas state banks have long provided custody and custody services for a variety of assets to their clients. These services play a vital role in banking as customers turn to banks for safe and reliable storage. While the custody and custody of virtual currency will necessarily differ from those associated with more traditional assets, the Texas Banking Department's mandate to provide these services "Requirements set out in the Notice defines the "required controls" that banks must follow. they choose to offer virtual currency services A mix of administrative and technical controls are listed: “Required controls consist of administrative controls such as policies and procedures; technical controls such as access controls and authentication; and physical controls such as hardware and data protection specific to the virus currency retained. The bank should also confirm with the insurance company the existence of adequate collateral.' The client may have direct control over their crypto and hold copies of their virtual keys, or the bank may hold private keys on behalf of the client. Different trustee approaches, banks, any bank acting as trustee,

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