FDIC says banks can engage in crypto activities without prior approval
FILE PHOTO: The Federal Deposit Insurance Corp (FDIC) logo is seen at the FDIC headquarters as Chairman Sheila Bair announces the bank and thrift industry earnings for the fourth quarter 2010, in Washington, February 23, 2011. REUTERS/Jason Reed/File Photo
WASHINGTON :Another U.S. bank regulator has announced that banks do not need to receive advance permission to engage in some crypto-related activities.
The Federal Deposit Insurance Corporation announced Friday that banks can engage in legally permitted activities, including those that involve cryptocurrency, without receiving prior regulatory approval and so long as they manage their risks appropriately.
The move reverses previous FDIC policy, which required banks to clear any crypto activities in advance.
"The FDIC is turning the page on the flawed approach of the past three years," said acting FDIC Chairman Travis Hill in a statement, adding there will be additional moves in the future to clarify banks' engagement with crypto products and services.
The FDIC's move comes after another bank regulator, the Office of the Comptroller of the Currency, similarly moved to clear the way for banks to move into the crypto sector.
