US State Of Virginia Allows Banks To Offer Crypto Custody Services

The US State of Virginia and its senate, allow the banks to start offering crypto custody services according to the latest reports that we have in today’s crypto news.

The delegate Christopher T. Head introduced the new bill back in January and sought an amendment to allow eligible banks to offer crypto custody services. The US State of Virginia and its senate approved the bill amendment request which now allows the traditional banks to operate in the state and provide virtual currency custody services. The House Bill no.263 now states:

“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.”

The bill passed Senate with a unanimous vote and it is waiting to be signed into law by the Governor of Virginia Glenn Youngkin. The banks that intend to offer these services to clients will need to adhere to three specific requirements mentioned in the bill and implement effective risks management systems and have adequate insurance coverage with a launch on oversight program to address the risks associated with crypto. However, the Senate will require the bank’s customers to retain direct control of the public and private keys associated with the virtual currency:

“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.”

Other states like Wyoming already saw an introduction of legislation for the state-issued stablecoin. The House Committee on Financial Services even talked about regulations of stablecoin which should be addressed on a state or federal level. In this regard, North Carolina Representative Patrick McHenry asked the committee to consider state-level regulatory frameworks with comprehensive laws on stablecoins. Jean Nellie Liang also said that the US dollar-pegged stablecoin issuers should be held to the same standard as an insured depository institution.

As recently reported, The US State of Virginia became popular for its apparent interest to study blockchain and see how it will help it improve elections and voting. Virginia’s General Assembly has proposed the bill, where it asks the Department of Elections to determine whether blockchain technology should be considered to secure voter records as well as election results.