Texas Department of Banking allows banks to hold Bitcoin

Date:

Share post:

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.

spot_img

Related articles

Cyprus registers Binance as a cryptocurrency service provider.

Binance, a cryptocurrency exchange, will be able to provide services for virtual currencies in Cyprus as a result...

More than 24,000 ATMs in Brazil will offer USDT through Tether and Smartpay.

Usdt, the largest dollar-pegged stablecoin on the market, was created by Tether, a company. Tether recently announced that...

To solve the blockchain modularity issue, Celestia raises $55 million.

The project Celestia, which seeks to address the alleged centralization issue in the current monolithic blockchains, has announced...

Hong Kong considers removing the “Professional Investor-Only Requirement” and allowing retail investors to trade cryptocurrency.

Securities and Futures Commission (SFC) of Hong Kong's director of licensing and head of the fintech division both...