Eligible banks to offer crypto custody services in Virginia
Cryptocurrency investors and fans in the Commonwealth of Virginia would be delighted with this news. Recently the The Senate of Virginia in the United States gave a green light to a bill amendment request that authorizes traditional banks to provide virtual currency custody services in the region.
House Bill No. 263, submitted by Delegate Christopher T. Head in January 2022, seeks an amendment to enable qualifying institutions to offer crypto custody services:
“A bank may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws.”
The bill cleared the Senate with a resounding 39-0 majority and is now awaiting Governor Glenn Youngkin’s approval and signature. Banks looking to provide crypto custody services will need to follow a set of guidelines mentioned in the bill
- Have risk management systems
- Robust insurance coverage
- Create an oversight program to combat risks associated with digital assets
The Senate, on the other hand, will ensure that bank clients retain direct management of their virtual currency’s public and private keys. As things stand, owners of the digital assets will retain full control of their public and private keys, adding “Acting in a fiduciary capacity, the bank shall require customers to transfer their virtual currencies to the control of the bank by creating new private keys to be held by the bank.”
In other jurisdictions, such as Wyoming, legislation for a state-issued stablecoin has recently been introduced. In the last few weeks, there has been ongoing discussions in the House Committee on Financial Services as to whether stablecoin regulations should be done at state or federal level.
As things stand, Cryptocurrency investors and fans in the Commonwealth of Virginia would be delighted with this news.