Novel banks catering to the cryptocurrency industry are seeking to tap into the Fed’s payments systems. Incumbent banks are pushing back.
WASHINGTON—Cryptocurrency companies want to tap into the Federal Reserve payments systems that traditional banks use to move money around quickly. The banks are pushing back.
The companies include Avanti Bank, which aims to provide custody services for institutional investors in cryptocurrencies, and Kraken, a cryptocurrency exchange platform. They say direct access to the Fed’s payment systems would allow them to more quickly and cheaply process orders from customers buying and selling digital assets. Currently they must partner with traditional banks that have accounts with the Fed.
Traditional banks say the newer financial firms are supervised relatively lightly and lack the internal controls needed to ensure against money laundering and other illicit activities—concerns that regulators have expressed about the crypto industry more broadly. And they say the firms are riskier because they aren’t insured by the Federal Deposit Insurance Corp.
“It is reasonable to expect that such applicants will pose heightened risks regarding matters of anti-money-laundering, cybersecurity and consumer protection, as well as safety and soundness,” the Bank Policy Institute, which represents large banks, and the Independent Community Bankers of AmericaAvanti and Kraken, which both have “special purpose” bank charters in Wyoming, say they have all the same compliance, controls and supervisory requirements of traditional banks. The only U.S.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Why bitcoin and crypto are scoring a boost from Powell’s dovish Jackson Hole remarksBitcoin prices and the broader complex of virtual currencies were on the rise and the U.S. dollar was lower Friday, after a speech from the Federal Reserve...
Leer más »
Women Turn To Crypto For Funding And Financial Freedom When Other Systems Are BlockedWomen face endemic financial barriers to economic freedom, entrepreneurial pursuits, independence, and security.
Leer más »
WSJ News Exclusive | China Plans to Ban U.S. IPOs for Data-Heavy Tech FirmsChina’s stock regulator plans to propose new rules that could thwart internet companies’ plans to list in the U.S.
Leer más »
Russia cultivates alternatives to Western financial firmsRussia has created a homemade rival to Visa and Mastercard. Its central bank set up a payments system with its own card, named Mir (“world”, or “peace”, in Russian)
Leer más »
Tianjin asks govt firms to move data out of Alibaba, Tencent clouds-documentThe Chinese city of Tianjin has asked municipally controlled companies to migrate their data from private sector operators like Alibaba Group (9988.HK) and Tencent Holdings (0700.HK) to a state-backed cloud system by next year, according to a document seen by Reuters.
Leer más »
China to clamp down on overseas IPOS for tech firmsThe move will make it tougher for businesses to raise cash in lucrative US market and gives further control to Beijing as it presses on with its regulatory clampdown on private industries.
Leer más »