US Banks Start Offering Crypto Custody Services
By Max Steadman – Cryptocurrency Enthusiast
In recent news, a public letter between the Senior Counsel Jonathan Gould and Senior Deputy Comptroller on July 22 wrote that the US national banks now have the authority to hold onto the cryptocgraphic keys for a digital currency wallet.
This decision proves to be a milestone, as traditional banks build and prepare infrastructures that will enable crucical cryptocurrency services for their clientele. At present, crypotocurrency specialist platfoms, such as Coinbase and Binance, are typically the authoritave custodians in the space. With this move, regulated and larger banking companies that already deliver financial custody services can now enter and influence the sector.
The letter is addressing a bank which remains unidentified, asserting that this new allowance “may offer more secure storage services compared to existing options.” Some suggest that consumers as well as investment advisors may opt for government regulated guardians to ensure the safety and security of their unique private keys and their subsequent access to their assets.
The letter also highlighted the need for digital wallets, adding that since they are built and exist on a blockchain, those who buy and sell cryptocurrency never experience a full sense of physical ownership of the asset. Furthermore, the letter said that the OCC recognized the need for banks and other service providers to increase their leveraging and application of new technology.
The letter goes on to emphasise that the banks who will be joining this space must develop and implement their new services in correspondence with the “risk management practices” surrounding cryptocurrency trading.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards