The notice emerged after the Texas regulator recently passed a new bill allowing recognition of the crypto procedure under state commercial law.
The Texas regulator has ordered state chartered banks to keep crypto and Bitcoin assets in their custody.
The process for recognizing crypto investments as legal digital currency under commercial law was passed in the state last month. Texas has seen exponential growth in crypto and bitcoin proceedings, which has accelerated the judgment of Texas banking authorities in legalizing crypto transactions as a legitimate and fair way to trade.
The Texas Department Thursday Posted a statement announcing that local banks have now been licensed to accept and provide Bitcoin services in the state.
Texas State Chartered Banks to Store Cryptocurrency Services
Texas regulatory authorities also mentioned that cryptocurrencies have no physical form, highlighting the possibility that the currency is stored as blockchain data. This blockchain will consist of a unique data code or private keys that will further grant access to the owner.
Authorities have clarified how banks will act as custodians of crypto services and help customers store digital currency on their behalf. Customers willing to submit their Bitcoin transactions to custody will be required to provide a copy of their private keys to banks or banks will also prepare new keys to track Bitcoin transactions.
Banks will provide full custodial access to crypto users by offering them various storage options separated in terms of security levels and accessibility to protect investors from any impending financial risk.
Texas Passes Crypto Services Legalization Bill Under Commercial Law
The notice emerged after the Texas regulator recently passed a new bill allowing recognition of the crypto procedure under state commercial law. Other states in the United States, such as Wyoming and Nebraska, have also been very outspoken about adopting bitcoin as a new digital revolution.
The federally chartered banks have also obtained the necessary authorization to provide crypto custody to their consumers and customers.
Banks will also confirm the acceptable level of coverage with the insurance company as an active estimate to protect existing crypto holdings in their custody. The agency further said it will provide custodial services to its clients after ensuring that banks have sufficient protocols in place to effectively handle growing crypto transactions and established government guidelines to minimize the risks involved. .
Juhi Mirza is an archeology student who is obsessed with blockchain / crypto technology and considers it to be the fundamental philosophy of the future. Her relentless ability to research and crystallize multiple technical facts / perspectives into compelling stories makes her an accessible financial writer. She takes care of her archaeological activities and loves to dig up the past on weekends.