The US office of Comptroller of Currency, or OCC, has given out a recent custody clarification when it comes to cryptocurrencies. According to Hong Fang, the CEO of OKCoin, however, this will stand to affect institutional-grade investors the most.
Clarifications Will Benefit Institutional Players The Most
She explained that retail investors have a very wide range of choices, and preferences, already in play in the world at large. However, institutional investors, by virtue of their sheer scope, had relatively less. Fang stated that she was eager for banks to become a more integral part of the crypto industry at large. In particular, she’s hoping for higher levels of public awareness, better banking channels, as well as more clarity from regulators. She stated that a better experience for users ultimately wins the day.
On the 22nd of July, 2020, the OCC gave a clarification to the then-grey area of cryptocurrency custody for large banks. Because of this clarification, federally chartered banks can now start serving as crypto custodians without the fear of regulatory uncertainties.
A New Dawn Of Crypto Custodianship
Fang explained that the OCC’s new ruling is a definitively positive piece of news for the crypto industry, who is still infantile compared to other finance sectors. Fang stressed what an important milestone it is to have the OCC clarify and validate crypto as a legitimate asset class for banking firms. With this, traditional banks will be capable of providing custodial services to crypto holders, which will strengthen the financial system, overall, as well as increase financial inclusion.
Fang highlighted that further expansion within the crypto industry is to be expected thanks to this clarification of the OCC.
Demand Is Everything
With the clarification made by the OCC, coupled with the growth of the crypto and blockchain industry, overall, one might assume that banks will naturally become involved within the space. Fang gave comment about the matter, explaining that banks will start providing services and products that are in demand by their customers. Thus, Fang explained that a respective bank’s target market would affect whether or not they will start offering crypto services. Alongside this, the ongoing mainstream adoption of cryptocurrencies is a crucial factor, as well.
The crypto industry at large is currently housing several entities geared towards blockchain solutions, Fang says. This is especially so in regard to the US, where institutions separate from the banking sector are very involved in the space.
from InsideBitcoins.com https://insidebitcoins.com/news/institutional-investors-gain-the-most-from-occ-crypto-clarity-says-okcoin
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