The regulator in the state of Texas has given a green light to the state-chartered banks in the state to provide digital currencies custody services. This development comes after the […]
The regulator in the state of Texas has given a green light to the state-chartered banks in the state to provide digital currencies custody services.
The official documents from the Texas Department of Banking however point out that banks must have enough agreements to ensure compliances with the existing laws and mitigate risks associated with the volatile cryptocurrency markets.
The Counsel for Banking Industry of Texas Assistant General, Marcus Adams said in a comment,
“Both at the state and federal regulatory agencies, we’re seeing a rise in the virtual currency industry as it continues to evolve, We expect our banks to start seeing demand from their customers and we want them to be prepared for that.”
Following the green light, State-chartered banks in Texas have the liberty to choose the type of custodial services to offer to their customers. They may choose to avoid controlling the actual customers’ cryptocurrency holding by storing only a copy of the cryptocurrencies and their respective private keys or control the actual cryptocurrency holdings and allow customers to transfer cryptocurrencies from one bank to another or from the bank account to other platforms.