Virginia Senate passes crypto banking bill - banks to become crypto custodians

Virginia crypto bill

The Senate of Virginia in The United States has anonymously approved the cryptocurrency banking bill. Previously, the bill was addressed and cleared by the state’s House of Delegates. After which it was dispositioned for the amendment request where the banks were responsible to provide currency custody services to customers.

It is anticipated that Republican Governor Glenn Youngkin will be signing the bill within seven days once it arrives at his desk. According to House Bill No. 263 (H.B. 263) introduced in January 2022, all the banks working in the Commonwealth will stand a chance to become custodians for virtual currency and assets. Also, the banks will be supervised for managing the associated risks as per the accepted protocols likely to be put into place sooner.

According to Delegate Christopher T. Head, who introduced the bill to the House and is supposed to be the next candidate for state Senate, said

“A bank may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws.”

Virginia Del. Chris Head

More on House Bill No. 263

While speaking to Fox News Digital, Del. Christopher told that the idea to introduce H.B. 263 came up last summer when he read about how Texas is addressing issues with cryptocurrency. However, he dreams of Virginia as the first state in the country for developing systems through legislation for state-chartered banks to become custodians for cryptocurrency. Moreover, future Senate visions that everyone should pay attention to cryptocurrency. Cryptocurrency will go to emerge as an economic asset with significant potential for economic development.

In corresponding to the report, it will be mandatory for the customers to give direct control of their public and private keys of virtual assets to the banks. Also, the banks need to adhere to three significant requirements:

  • possessing suitable insurance coverage,
  • implementing a highly potent risk management system,
  • launching programs to communicate risks associated with cryptocurrency.

Also, read - The Swiss city Lugano to legalize Bitcoin & Tether

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