US banking regulators soon to clarify banks crypto currencies role in 2022
The US has announced through the banking regulators that they will soon clarify the rules and regulations around how banks can use crypto currencies over the next year.
The announcement comes at a time when various governments globally, including India, are weighing the risks associated with crypto currencies and safeguarding investors.
The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency said, “They recognize that the emerging crypto-asset sector presents potential opportunities and risks for banking organizations, their customers and the overall financial system.”
The regulators issued a joint statement on Wednesday in which it said, “As supervised institutions seek to engage in crypto-asset related activities, it is important that the agencies provide coordinated and timely clarity where appropriate to promote safety and soundness, consumer protection, and compliance with applicable laws and regulations, including anti-money laundering and illicit finance statutes and rules.”
The agencies said that they continue to monitor developments in crypto-assets and may address other issues as the market evolves.
Throughout 2022, the US agencies plan to provide greater clarity on whether certain activities related to crypto-assets conducted by banking organizations are legally permissible, and expectations for safety and soundness, consumer protection, and compliance with existing laws and regulations.
The agencies will continue to engage and collaborate with other relevant authorities, as appropriate, on issues arising from activities involving crypto-assets.
The Indian Government may soon look forward to banning cryptos, however allowing for certain exceptions to promote the underlying technology of crypto currency and its usage.
Several high-profile meetings have been held to discuss the regulation of crypto currencies in recent days. The Parliamentary Standing Committee had also called for the regulation on crypto currencies and their ecosystem.
Prime Minister Narendra Modi had earlier said that all democratic countries need to work together on crypto currency and ensure that it does not end up in the wrong hands.
Giving an example of the virtual currency, he had said: “Take crypto currency or Bitcoin for example. It is important that all nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth.”
[With Inputs from IANS]
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