Federally insured credit unions (FICUs) are permitted to partner with digital asset providers in accordance with new regulatory recommendations.
On Dec. 16, the National Credit Union Administration said in a report that credit unions have the ability to establish relationships with third-party digital asset providers, including those that allow customers to buy, sell and hold digital assets without guarantees.
“As an insurer, NCUA does not prohibit FICUs from establishing these relationships,” the government agency’s letter states.
To qualify, credit unions must be able to refer members to other services, particularly non-deposit services, if they pose similar risks to the credit union, those services must be useful and related to other business activities of the credit union.
FCIUs are not limited in the services to which they may refer their members. Doing so, however, requires good and careful judgment. For instance, credit unions can refer their members to crypto services free of charge.
NCUA noted that other U.S. regulators, such as the SEC, CFTC, and FinCEN, also have jurisdiction over crypto-related activities, and noted that credit unions should be conscious of this fact and will continue to investigate these issues.
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Sunday, December 19, 2021