A important number of United States banks nether nan Federal Deposit Insurance Corporation (FDIC) are progressively exploring nan crypto space seeking to connection different services amid user demand.
In this line, information by nan FDIC revealed that arsenic of January 2023, astir 136 banks were readying aliases already progressive successful various crypto-related initiatives, a report by nan Office of Inspect General (OIG) published connected February 16 indicated.
With a deficiency of clear regulations, nan study noted that nan banking sector players are mostly progressive pinch 3rd parties entities to research nan integer rate space.
“According to FDIC data, arsenic of January 2023, nan FDIC was alert that 136 insured banks had ongoing aliases planned crypto asset-related activities. For example, these banks person arrangements pinch 3rd parties tha let slope customers to bargain and waste crypto assets. Banks besides supply relationship deposit services, custody services, and lending to crypto plus exchanges.” nan OIG said.
The request for regulations
The rising engagement of banks successful nan integer assets manufacture indicates nan increasing request for cryptocurrency-related services and reflects nan expanding fame of assets specified arsenic Bitcoin (BTC). However, nan OIG called for nan FDIC to connection due guidelines for lenders nether its mandate.
In particular, nan FDIC was challenged to guarantee that their policies and procedures see nan risks associated pinch integer assets, particularly concerning deposit insurance.
“The FDIC should activity pinch different regulators to supply clarity regarding nan regularisation of integer assets. <…> Further, nan FDIC should guarantee that its examinations, policies, and procedures reside user risks regarding integer assets, including nan narration of deposit security and integer assets,” nan study added.
The OIG highlighted nan request for regulations citing nan caller illness of nan FTX crypto exchange. Findings bespeak that earlier nan bankruptcy filing, FTX was doing business pinch astir 11 banks meaning they mightiness person been progressive successful vices specified arsenic ligament transportation fraud.
Furthermore, nan study cautioned that nan request for protection arises considering that 16% of Americans, aliases 52 cardinal people, person purchased cryptocurrencies. Of this group, astir 46,000 person mislaid complete $1 cardinal to cryptocurrency scams since 2021.
On nan different hand, nan FDIC has chiefly presented a skeptical guidelines connected cryptocurrencies maintaining that nan manufacture poses risks to nan wide financial system.
Overall, nan bank’s engagement successful crypto comes arsenic nan U.S. attempts to found a clear regulatory outlook for managing nan sector. Indeed, nan Executive Order by President Joe Biden is expected to connection much clarity.