Virginia allowed banks to store customers’ crypto

The state Senate ruled that customers will keep direct management of the public and private keys associated with their virtual currency

07.03.2022 - 13:25

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What’s new? The Senate of Virginia has unanimously approved a request for an amendment to a bill that will allow traditional banks to provide custody services for cryptocurrencies. House of Delegates representative Christopher T. Head introduced Bill No. 263 in January 2022.

Bill No. 263

Head proposed an amendment, adding:

“A bank may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws.”

What are the requirements imposed on banks? The bill has been supported in the Senate and the document is now awaiting Governor Glenn Youngkin’s signing. Banks will have to comply with three specific requirements: implement effective risk management systems, have appropriate insurance coverage, and start a crypto risk oversight program.

The Senate ruled that bank customers will keep direct management of the public and private keys associated with their virtual currency:

“Acting in a fiduciary capacity, the bank shall require customers to transfer their virtual currencies to the control of the bank by creating new private keys to be held by the bank.”

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