The Office of the Comptroller of the Currency (OCC) Grants Banks Authority to Trade Cryptocurrencies
The Office of the Comptroller of the Currency (OCC), a US-based banking regulator, has granted banks the green light to trade cryptocurrencies on behalf of their customers. With this groundbreaking directive, banks can now execute cryptocurrency transactions directly at the customer’s request. These operations can be integrated into the banks’ portfolios, provided that they meet security and robustness criteria. A significant red tape was eliminated in March when the pre-approval requirement for such transactions was lifted, thereby streamlining the operations of financial institutions.
New Powers Granted by the Directive
According to the OCC’s recent announcement, banks are now authorized to delegate cryptocurrency transactions to third-party service providers. This shift enables them to manage the technical infrastructure investments through outsourcing, allowing credit institutions to organize cryptocurrency trading for their customers flexibly. Previously, banks were required to engage in separate consultations with state officials before initiating cryptocurrency operations. This obligation is no longer necessary, and institutions are now only required to comply with specified security protocols.
Security and Collaboration Conditions
The OCC mandates that all cryptocurrency transactions adhere to existing security standards. Independent experts must approve infrastructure and software security audits, and banks are obliged to submit regular reports to demonstrate operational soundness. Industry players believe this newfound flexibility will drive competition. Specialized service providers are also seeking to form new collaborations with banks, gradually eroding the barriers between traditional banking and the world of cryptocurrencies.
Transactions previously conducted solely through decentralized platforms can now occur under the supervision and assurance of banks. This evolution is expected to enhance customer satisfaction while tightening risk management practices.
