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US Senate allows Virginia banks to offer crypto custody services

2022/03/05 11:19

According to Cointelegraph, the United States Senate unanimously approved a bill amendment request that now allows traditional banks operating in the Commonwealth of Virginia to provide virtual currency custody services. Delegate Christopher T. Head introduced the bill (House Bill No. 263) back in January 2022, seeking an amendment to allow eligible banks to offer crypto custody services. The bill passed Senate with a sweeping 39-0 vote and is waiting to be signed into law by Governor of Virginia Glenn Youngkin. Banks that intend to offer this service to clients will need to adhere to three specific requirements mentioned in the bill — implement effective risk management systems, possess adequate insurance coverage and launch an oversight program to address risks associated with cryptocurrencies. However, the Senate will require the banks’ customers to retain direct control of their public and private keys associated with their virtual currency, 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.”
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