Bank of America has received formal approval to provide brokerage services for virtual currency transactions to its customers.
US grants virtual currency intermediary license to banks: Bank of America becomes one of the first institutions to receive the license.
The U.S. Office of the Comptroller of the Currency (OCC) has announced that U.S. banks can act as intermediaries for virtual currency transactions. This new regulation will allow banks to buy and sell digital assets on behalf of their customers without having to hold them on their own balance sheets.
The “zero-risk master trading” model defined by the OCC is similar in structure to the way banks currently trade securities for their clients.
Therefore, the bank only plays an intermediary role in the order submission, verification and settlement process. They do not take positions directly in crypto assets. This gives institutions a more controlled process in terms of regulation and risk management.
According to experts, this step could pave the way for traditional financial institutions to more securely integrate into the digital asset ecosystem. Bank of America’s early approval is seen as an important signal towards the expansion of cryptocurrency services in the US banking sector.
This new regulation is seen as an important milestone that will allow both retail and institutional investors to access crypto trading through banks in a more secure and financially transparent manner.
*This is not investment advice.
