I am writing this up because I think it’s a big deal. Over the past few months, Texas has been in the headlines quite a bit. We have been consistently ranked as one of the best states in the country when it comes to quality of life, and it’s no wonder: Texas has been the economic engine of the country for the past few decades.
Texas regulators have approved a charter for a Texas-chartered bank that will be allowed to hold and exchange bitcoin and other cryptocurrencies. The firm, called Crypto Currency Exchange (CCX), will be the first bank in the state to hold cryptocurrencies like bitcoin, ethereum and litecoin.
Following a change in state law, Texas-chartered banks will now be able to accept Bitcoin, and other digital currencies, as a form of payment. The official Texas Department of Banking (DOB) website has released a statement confirming that Texas state-chartered banks are now permitted to accept digital currency as a form of payment, including Bitcoin. According to the DOB statement: “Some Texas banks are already operating in a way that allows them to accept virtual currency. Under Texas Banking Code, Chapter 34, Section 3.103(h), a state-chartered bank may receive funds from a person acting as an agent or cashier for the customer in digital funds. Previously, state-chartered banks were not able to accept payment in
A Texas regulator has officially confirmed that Texas-registered banks will be allowed to store cryptocurrencies like bitcoin (BTC) for their customers. The Texas Department of Banking, the state’s regulator that charters state banks and oversees financial services, issued a notice Thursday that local banks may offer cryptocurrency services in the state. The agency noted that banks in Texas may offer virtual currency custody services to their customers, provided the bank has adequate protocols in place for effective risk management and compliance with applicable laws. The regulator spoke briefly about cryptocurrencies, pointing out that virtual currencies do not exist in physical form, but on a blockchain, so the owner must have private keys to access them. The agency also explained that banks can store cryptocurrencies on behalf of their customers either by keeping copies of the customers’ private keys or by storing the assets directly in the bank’s vault by creating new private keys owned by the bank. As with the storage method, several storage options are available to the Bank, each with its own characteristics in terms of security and accessibility. The bank must decide which storage option best suits the circumstances, the agency wrote. Related: US FDIC wants views on role of banks in cryptocurrency markets The department also noted that a bank must confirm that it has sufficient coverage with its insurer as a measure to protect its crypto assets. The regulator’s announcement came shortly after members of the Texas House of Representatives passed a bill last month to recognize cryptocurrencies in commercial law. Other US jurisdictions, such as Wyoming and Nebraska, are actively implementing crypto currency storage services through state-licensed banks. Last September, Wyoming announced the Kraken exchange as its first cryptocurrency exchange. Federally chartered banks were also approved in July 2020 to offer storage services for cryptocurrencies.The Texas State Bank commissioner has approved the first-ever license for a Texas-chartered bank to engage in “virtual currency” transactions. The license, awarded to the First Bank of Texas, the state’s only full-service financial institution, will allow it to hold and transact various digital assets—known as virtual currencies—for its customers.. Read more about state-chartered bank definition and let us know what you think.
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