In addition, all credit institutions planning a business with digital money would have to inform the Central Bank in advance. It is also the task of the respective bank to ensure that the planned transactions are legally compliant, the Fed announced on Tuesday. Of particular importance is the availability of risk management systems that ensure that the volatile assets do not violate consumer protection.
The move comes just days after several Democratic senators called on the banking regulator OCC to supplement its existing guidelines on cryptocurrencies. Last year, US banking regulators, including the Fed, announced that they would clarify in 2022 whether banks are allowed to hold digital assets on their balance sheet and facilitate crypto trading on behalf of customers.
