Federally insured credit unions (FICUs) are allowed to work with digital asset services under new regulations. Credit unions serve 126 million American citizens, just under 39% of the U.S. population who can now potentially access cryptocurrencies.
FICUs are now allowed to operate digital asset services under new regulations. A December 16 letter from the National Credit Union Authority states that credit unions have the authority to form relationships with third-party digital asset services. This includes services that allow clients to buy, sell, and hold uninsured digital assets, Crypto Briefing reports.
“As insurer, the NCUA does not prohibit FICUs from establishing these relationships,” the government agency’s letter reads.
However, there are conditions under which credit unions can refer their members to other services. For example, credit unions can refer members to a non-deposit service so long as it offers similar risks to a credit union. Those services must also be useful and logically related to the credit union’s other business activities.
Ultimately, the FICU is “not limited” in the services to which they can refer members, but must use sound judgment and due diligence. This gives credit unions the ability to refer members to crypto services. In general, this permission expands the capabilities of banks and financial institutions to work with cryptocurrencies.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.