A senate of Virginia introduced a bill to allow the traditional banks to provide crypto custody services.
Despite huge concerns, the adoption of the crypto industry is surging rapidly day by day. In this growing adoption of this industry, the majority of the traditional financial services are under high pressure to lose all their customers because of this newly emerging financial system.
In January 2022, Delegate Christopher T. Head, Senate of US in Virginia, introduced a bill (House Bill No. 263) to give the legal power to the traditional banks to offer crypto Custody services.
“A bank may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws.”
This bill is finally approved with 39-0 vote support. Now this bill will go at the table of Glenn Youngkin, Governor of Virginia. The Virginia governor will sign this bill to approve the bill to get into effect.
After the final phase of approval, it will allow all the banks to give virtual currencies based custody but under the eligible conditions, that means Banks, which wants to provide crypto Custody services, will ensure the all necessary provisions of the bill like insurance coverage and launch an oversight program to increase awareness about crypto assets associated risks.
To ensure the security of the funds, Banks will be required to have the crypto funds of their clients with the newly generated keys.
“Acting in a fiduciary capacity, the bank shall require customers to transfer their virtual currencies to the control of the bank by creating new private keys to be held by the bank.”
These efforts will push the traditional financial systems to evolve more with modern technology and innovation because interaction with crypto assets will increase the interest of Banks to adopt blockchain technology in different ways to enhance the potential of the financial system.
Read also: Switzerland will freeze Russian crypto funds
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