Juhi Mirza is an archaeology major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.
The notice has appeared after the Texas regulatory body had recently passed a new bill consenting the crypto proceedings to be recognized under the State’s commercial law.
The Texas regulatory body has issued an order for the state-chartered banks to preserve crypto and Bitcoin assets under their custody.
The process to recognize crypto investments as legal digital currency under commercial law was passed in the state last month. Texas has been growing exponentially well in the proceedings of crypto and bitcoin which has accelerated the judgment of Texas banking authorities in legalizing the crypto transactions as a legitimate and fair way to trade.
The Texas Department on Thursday issued a statement announcing that the local banks have now been granted permission to accept and conduct Bitcoin services in the state.
Texas State Chartered Banks to Store Cryptocurrency Services
Texas regulatory authorities have also mentioned how cryptocurrencies have no physical form stressing the possibility of the currency being stored in the form of blockchain data. This blockchain will consist of a unique data code or private keys that will further grant access to the owner.
The authorities have clarified how the banks will act as a custodian of the crypto services and assist the customers in storing the digital currency on their behalf. The customers willing to submit their Bitcoin transactions for custody will be required to provide a copy of their private keys to the banks or the banks will also prepare new keys to keep track of bitcoin dealings.
The banks will provide complete custody access to the crypto users by offering them various storage options segregated in terms of security and accessibility levels to keep the investors safe from any impending financial hazard.
Texas Passes a Bill on Legalizing Crypto Services under Commercial Law
The notice has appeared after the Texas regulatory body had recently passed a new bill consenting the crypto proceedings to be recognized under the State’s commercial law. Other states of the USA such as Wyoming and Nebraska have also been quite candid about embracing bitcoin as the new digital revolution.
The Federal-chartered banks have also obtained the necessary authorization to provide crypto custody to their consumers and clients.
The banks will also confirm the level of acceptable coverage with the insurance carrier as an active estimate to protect the existing crypto holdings in their custody. The agency further stated that they will provide custody services to their clients after ensuring that the banks have sufficient protocols in place to effectively manage the growing crypto transactions and established governmental guidelines to minimize the risks involved.