By coinfeedsJune 11, 2021

A Texas state regulator has officially affirmed that Texas state-chartered banks are allowed to store cryptocurrencies like Bitcoin.
The Texas Department of Banking issued a notice stating that local banks are permitted to provide crypto services in the state. The agency noted that Texas banks “may provide customers with virtual currency custody services, so long as the bank has adequate protocols in place to effectively manage the risks and comply with applicable law.”
The regulator briefly explained cryptocurrencies, stressing that virtual currencies do not exist in a physical form, but on a blockchain and thus require the owner to hold private keys to access them. The authority further stated that banks can store crypto on customers’ behalf, either by keeping copies of the customer’s private keys or holding the assets directly in the bank’s custody by creating new private keys held by the bank.
The department also mentioned that the bank should confirm the existence of adequate coverage with its insurance carrier as a measure to protect its crypto holdings.
Posted on June 11, 2021By coinfeeds
Disclaimer:
The content provided on this website, including news, blogs, and updates, is sourced from various third-party websites and platforms. While we strive to ensure the accuracy and reliability of the information, we do not claim ownership of the material or any intellectual property rights associated with it, unless otherwise stated. All trademarks, service marks, and other content featured on this site are the property of their respective owners.
We encourage readers to verify the information from original sources before making any financial or investment decisions. The information on this website is for general informational purposes only and does not constitute financial or investment advice.
We make no warranties or representations regarding the completeness or accuracy of the content and are not liable for any damages or losses resulting from the use of the information provided on this site.
If you are the owner of any content and believe it has been used improperly, please contact us at [email protected], and we will take appropriate action.