Interpretation of OCC's intention: Can Bank of America hold privacy coins?
Editor's Note: This article comes fromGolden Finance, reprinted by Odaily with authorization.
Editor's Note: This article comes from
Golden Finance
Golden Finance
, reprinted by Odaily with authorization.
The U.S. Office of the Comptroller of the Currency (OCC) has taken a new step in cryptocurrency regulation, aiming to help banks deal with privacy coins. The U.S. Office of the Comptroller of the Currency (OCC) acting head Brian Brooks confirmed that the regulator wants to clarify whether privacy coins including Monero (XMR) and Zcash (ZEC) are allowed to be held, traded, or lent by banks. asset.
However, in an interview with the Wall Street Journal, Brian Brooks did not further explain when he would announce the relevant clarifications. At present, overseas media have contacted the U.S. Office of the Comptroller of the Currency for verification. Whether the blockchain can be used as the basis of the payment network.
Brian Brooks, who previously served as general counsel for cryptocurrency exchange Coinbase, said:
"In the early stages, regulators seemed to be biased towards the state of the cryptocurrency industry, people tended to take the most conservative and strict approach to risk, and many of what would later prove to be the greatest inventions of all time were delayed because of this approach And now, hoping not to repeat the same mistakes, the OCC has decided to take up the challenge head-on, unleashing the power of technology while being mindful of legal risks.”
In July, the U.S. Office of the Comptroller of the Currency opened the door for federal savings associations and national savings banks that want to hold cryptocurrencies on behalf of their clients. The regulator issued a notice on July 22 allowing national banks and federal savings associations of all sizes to custody cryptocurrencies, stating that such custody services are a “modern form” of traditional banking activities related to custody services. The decision comes about a month after the OCC sought public comment on such agencies' digital activities, including in the digital assets and blockchain space, and the resolution marks a major shift in the relationship of the U.S. banking industry to the emerging cryptocurrency ecosystem . Several banks, including US Bank and PNC, have since responded that they may be interested in offering encrypted custody and other services to customers.
In addition to the announcement statement, the OCC issued an explanatory letter outlining the policy shift. Some of the regulatory requirements in the letter, though unnamed, are notable, particularly as they relate to the powers of national banks to provide cryptocurrency custody services to clients. The U.S. Office of the Comptroller of the Currency stated:
Since digital currencies only exist on the blockchain or distributed ledger where they are stored, the tool does not actually own the digital currencies. Instead, by using unique cryptography, having the right to transfer a particular unit of digital currency between parties means that a bank 'holds' digital currency on behalf of a client, effectively possessing the encrypted access key to that encrypted currency unit . In addition, the letter of explanation cites existing OCC regulatory guidance, which explains that banks may hold a variety of assets as custodians, including some that are unique and difficult to value, and that bank custodial activities include the following: Assets transferred electronically.
The OCC also stated:
Institutions that have been engaged in safe deposit and custody activities for a long time can provide cryptocurrency custody services, which is a form of authorization that allows national banks to carry out traditional banking operations electronically, including credit-granting and non-credit-granting capabilities. Banks that provide cryptocurrency custody in a non-trustworthy capacity essentially provide custody for cryptographic keys to control and transfer customers' cryptocurrencies.
In September, the international law firm Perkins Coie said that regulated financial institutions need to ensure compliance with anti-money laundering regulations when supporting privacy coins. It fits well, because as early as last July, Coin Center, the largest cryptocurrency industry think tank in the United States, petitioned the Office of the Comptroller of the Currency to allow banks to support cryptocurrencies and accept stablecoins pegged 1:1 to a "single fiat currency." . At the end of the month, the U.S. Office of the Comptroller of the Currency issued updated guidelines again, allowing the National Bank of the United States and the Federal Savings Association to now hold reserves for stablecoin issuers, and stablecoin issuers can place assets in the reserve account of the National Bank of the United States to Ensure that the issuer has sufficient assets to back the stablecoin with custodial wallets. For the reasons stated above, the OCC concluded that a national bank may hold such stablecoin “reserves” as a service to the bank’s customers.
