The Federal Reserve Board denied a Wyoming cryptocurrency bank’s application Please see the following: Federal Reserve System membership, officials announced Friday, dealing a setback to the crypto industry’s attempts to build acceptance in mainstream U.S. banking.
Many crypto investors have started to look for Cheyenne-based cryptocurrency. Custodia Bank’s more than 2-year-old application as The bellwether of crypto banking. The approval would have given you access to Federal Reserve Services, including electronic payment system.
Cryptocurrency is now in doubt after the rejection banking’s viability, particularly in Wyoming, a state that has sought to become a hub of crypto bankingExchanges, mining and trading.
Custodia’s business model and focus on crypto presented “significant safety and soundness risks” Depositors can use the Federal Reserve Board made the statement in a release.
“The board has previously made clear that such crypto activities are highly likely to be inconsistent with safe and sound banking practices,” They added it.
The board expressed concern about Custodia’s ability to discourage money laundering and terrorism financing through crypto.
Custodia The sued Federal Reserve Board Federal Reserve Bank Last year in Kansas City, Wyoming Federal Court accused them of spending an unreasonable amount of time waiting for it application. The company stated in a Friday statement that it had been “surprised and disappointed” disappointed by the decision and promised to pursue the matter.
“Custodia offered a safe, federally regulated, solvent alternative to the reckless speculators and grifters of crypto that penetrated the U.S. banking system, with disastrous results for some banks. Custodia actively sought federal regulation, going above and beyond all requirements that apply to traditional banks,” Caitlin L. Long, the CEO was quoted as saying this statement as saying.
Wyoming recently passed many crypto-friendly laws and regulations. This is the digital ledgers that Bitcoin, Etherium, and other cryptocurrency run on. A new law permits state-chartered cryptocurrency banks to be called special purpose depositories.
Wyoming has chartered four such crypto banks called SPDI’s, or “speedies,” Included Custodia. They show little activity in public. Custodia’s application It was in process.
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