During the year of 2021, the price of the digital currency has more than doubled.
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According to a report, credit unions in the US are looking to hold cryptocurrencies like bitcoin, following regulatory clarification that they can offer services by teaming up with third parties.
The National Credit Union Administration said in a letter last week that if certain conditions are met, credit unions with federally insured deposits can work with third-party providers to allow their members to purchase, sell, and hold digital assets.
Lance Noggle, senior director of advocacy for payments and cybersecurity at the Credit Union National Association, said in a report that the guidance gives credit unions the assurance to form partnerships, clarifying what many thought had been possible under existing rules.
Noggle said that the goal of credit unions is to provide their members with the same services as banks. The Office of the Comptroller of the Currency gave approval to offer custody services for cryptocurrencies in July 2020. Banks need to get written permission from their supervisor.
The National Association of Federally-Insured Credit Unions is looking for approval to provide cryptocurrencies custody services.
The National Credit Union Administration said in a letter that it will evaluate a credit union's relationship with third parties in the same way it would evaluate any other relationship.
"This includes a FICU exercising sound judgment and conducting the necessary due diligence, risk assessment, and planning when choosing to introduce or bring together an outside vendor with its members," NCUA wrote.
The adoption of cryptocurrencies by institutions and retail investors has led to an increase in the market's valuation. After hitting a $3 trillion valuation in early November, the market was valued at around $2.4 trillion as of Thursday.
Business Insider has an original article.
