According to Wall Street Journal’s report, four major crypto assets plan to apply for bank license or similar permissions to integrate crypto assets into the traditional financial system. The report states that companies aim to carry out deposit services and credit transactions by taking strategic steps.
Crypto and Banks
The report states that the US -based Circle and Bitgo have applied for federal bank approvals. Companies aim to provide deposit collection and credit services in order to carry out traditional banking functions. Similarly, it is stated that Coinbase and Paxos evaluate taking similar steps.
With Trump’s task, he encouraged increasing optimism companies for regulations.
Regulatory Investigations and Compliance Processes
Currently, Anchorage Digital stands out as the only crypto asset company with a federal bank license. In 2022, the OCC was required to make improvements by customer control, preventive measures and suspicious transaction tracking. Last week, the US Department of Security El Dorado task force contacted the policies implemented with the employees of the company.
Although the reasons for the investigation of the company are not yet clear, the crypto asset sector’s efforts to adapt to regulatory processes draw attention, but the road is still rugged. Recent explanations reveal the difficulties encountered in the integration process between crypto and traditional financial institutions.
Anchorage Digital Bank officials expressed the difficulties encountered in the process of adaptation to federal regulations. This integration process offers a complex structure to meet the regulatory and adaptation requirements of the crypto asset sector.
Anchorage CEO Nathan McCauley emphasized the complexity of trying to apply the regulatory obligations of banks to the crypto asset sector by drawing attention to the difficulties of this process.
Anchorage CEO Nathan McCauley: “This process was not easy; the integration of all regulatory and compliance obligations of banks into the crypto asset sector has various difficulties.”
It is a matter of curiosity how 4 big crypto money companies will overcome this laborious process.
These developments point to the efforts of the digital asset market to establish a more solid foundation between regulatory institutions and financial institutions. Improving compliance and audit standards can help strengthen the general structure of the sector.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
