[Asia Economy Reporter Kim Suhwan] U.S. regulatory authorities plan to require banks to obtain government approval before starting cryptocurrency businesses from next year.
According to Bloomberg News on the 23rd (local time), the U.S. Office of the Comptroller of the Currency (OCC) announced a new policy interpreting guidelines related to cryptocurrency.
First, banks must receive prior approval to handle cryptocurrency custody, hold dollar deposits backing stablecoins (cryptocurrencies pegged to the value of existing fiat currencies such as the dollar), and process cryptocurrency transactions linked to distributed ledgers.
The OCC emphasized that banks must request special permission from supervisory authorities and demonstrate sufficient risk management capabilities in this regard.
The OCC is an independent agency under the Treasury Department that supervises banks and savings institutions. Although it is not widely known to the general public, it is a key pillar of the U.S. banking supervisory framework alongside the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC).
Earlier, the Fed, FDIC, and OCC stated in a joint statement that next year’s guidelines will clarify the legitimate roles traditional banks can play in the cryptocurrency market.
They said they plan to clearly define what roles banks can have related to cryptocurrency, including issuing stablecoins, holding cryptocurrency assets, and conducting cryptocurrency transactions for customers.
They also emphasized that the rapid growth of cryptocurrency presents both potential opportunities and risks for existing banks, and that they will provide organized and timely guidance to resolve uncertainties.
These agencies have formed a working group to identify risk factors that may arise when banks engage in cryptocurrency operations and to find existing regulations that need revision.
However, Bloomberg News pointed out that since the organizational restructuring of these three agencies is not yet complete, it is unclear whether any policy agreement can be reached in the near future.
The Biden administration recently decided to reappoint Fed Chair Jerome Powell but has yet to nominate the next Vice Chair responsible for regulation, and the OCC Comptroller has not received congressional approval.
Additionally, Bloomberg News reported that the FDIC is currently led by a chairman appointed by former President Donald Trump.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
