Federal Reserve gives guidance to banks considering crypto activities

The U.S. Federal Reserve on Tuesday issued additional guidelines for banks considering activities involving cryptocurrencies.

The guidelines warned that banks must ensure that they have systems in place beforehand to ensure that volatile assets do not pose a threat to safety, soundness or consumer protection.

Banks are required to notify the Fed before undertaking any crypto-related activities, and all banks that have engaged in crypto-related activities should notify the Fed of their activities and involvement. State member banks are encouraged to notify their state regulator before engaging in crypto-related activities.

Banks supervised by the agency should take several steps before engaging in crypto-related activities, including determining whether existing laws require any filings and whether all eligible activities are legally permissible.

It is also important that banks have adequate risk management systems and controls in place prior to their involvement in crypto to ensure that all activities are carried out in a secure and sound manner and that crypto activities comply with relevant consumer protection legislation.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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