The Virginia Senate unanimously approved a bill on Friday that would allow banks in the state to offer cryptocurrency custody services, given that they had sufficient resources to manage the associated risks. The bill will come into effect when signed by Virginia Governor Glenn Youngkin.
The bill effectively enables banks to hold wallet keys for their clients and is aimed at institutional investors with large cryptocurrencies.
Bill intended to boost crypto investment in Virginia
The Invoice, no. 263Was sponsored by Delegate Christopher T. Head with the aim of taking advantage of the growing popularity of cryptography.
By codifying the ability of a nationally recognized bank to become a cryptocurrency administrator, this makes Virginia the first in the country to offer this ability to banks through law.
Delegate the head Fox news
This move represents another step in the growth trend of US states rushing to regulate cryptocurrencies. Space is recognized at the federal level, but not many individual states have comprehensive cryptographic regulations. last month, Colorado He said he would start accepting Bitcoin and other popular altcoins as tax payments. This is the first state.
The crypto trading boom until 2021 has also seen some states try to attract investors through favorable regulations.Data from the National Assembly of Parliamentarians Indicated The 33 states introduced legislation, including cryptography, in 2021.
Wyoming and Arizona are also proposing legislation that will allow citizens to pay taxes in cryptocurrencies. Arizona has also made a proposal intended to make Bitcoin a legal tender in the state. New York City Mayor Eric Adams has also agreed to receive the first three salaries in cryptocurrency.
Cryptographic storage as an institutional service
Cryptographic storage is different from regular wallets and is intended for institutional investors. Coinbase is currently one of the largest providers of cryptocurrency storage services, but Virginia’s move could boost competition in this sector.
Several other exchanges and banks have also started offering storage services since 2021. Storing your wallet key in a storage provider adds a layer of security to your crypto holdings, making key owners the primary access point to your customers’ crypto markets.
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The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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