On July 14, the OCC, the Fed, and the FDIC issued a joint statement addressing how existing laws, regulations and governing principles apply to banks which provide or are considering providing safekeeping for cryptocurrencies. The agencies clarified the statement does not create new supervisory expectations but emphasized the need for banking employees to know and understand the risks associated with cryptocurrency “safekeeping.” The goal would be to guide banks’ compliance with current laws and regulations by focusing on cybersecurity, anti-money laundering and sanctions risk, third-party risk management, and a review and assessment of such controls. Ultimately, a banking organization should prepare for an adaptive safekeeping program that adequately considers the changing cryptocurrency market, which may include significant resource investment in new technology, staff training, and environment security as technology changes and prices remain volatile.
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