Crypto statement for banks from the Fed and two major institutions

The ABD Central Bank (Fed), Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a joint statement summarizing that banks can provide custody services for cryptocurrencies and outlining the precautions they need to take while doing so.

In the statement, which noted that no new regulation has been established, it was emphasized that banks must comply with existing laws, regulations, and risk management principles while holding cryptocurrencies on behalf of their customers. It was also highlighted that sensitivity should be shown in ensuring the security of cryptographic keys.

According to the explanation, banks should enhance cybersecurity measures to ensure the security of cryptocurrencies, strengthen their technological infrastructure, and improve the expertise of relevant personnel. Additionally, it was noted that effective risk management should be implemented, considering the volatility of the cryptocurrency market and rapidly changing technological developments.

It was stated that banks must fully control the keys to customers' cryptocurrencies and prevent third parties, including customers, from unilaterally accessing the assets. It was emphasized that in case of loss of keys or unauthorized access, banks would be directly responsible for customer losses.

The statement emphasized that banks can offer the custody service of cryptocurrencies through third parties or sub-custodians, but that these institutions are also responsible for their activities. It was reminded that comprehensive risk assessments should be conducted before the selection of third parties.

On the other hand, banks were asked to strictly comply with the regulations on Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and the Office of Foreign Assets Control (OFAC) in their cryptocurrency custody activities. They were requested to prevent role confusion by providing customer information clearly and explicitly and to define responsibilities in detail with comprehensive customer agreements.

Finally, it was noted that banks need to improve their internal audit processes and controls regarding cryptocurrency custody activities, and that independent external auditors may be consulted when necessary.

Published: July 14, 2025 23:10