- OCC proposes new legislation that would allow crypto businesses enjoy better financial services from banks
- Says banks should stop its practice of excluding customers based on the industry they operates
Office of the Comptroller of the Currency (OCC) is trying to make sure that crypto businesses do not suffer any form of discrimination in the course of carrying out their activities again.
The OCC made a recent proposition that would allow crypto businesses the opportunity to have bank accounts just like every other legal business. This new proposal aims to end the prejudice held against crypto firms.
The earlier practice had been that banks and other financial institutions have always lumped all crypto businesses together. The evaluation of the firms in the sector follows a general consideration policy. This has always resulted in these financial institutions (banks) being unfair in their treatment of organizations working in the crypto space.
However, with this new proposed regulation, banks would have to evaluate each crypto firm individually to see how viable or trustworthy each is. They would have to stop the general evaluation practice.
The United States is not alone in the discrimination of crypto businesses. Other countries also tend to hold a bias against businesses in the crypto space. Some of them believe that these businesses are operating in a bubble system which could someday burst.
OCC’s proposition would see the risk involved in Crypto businesses evaluated in a better way
OCC new regulation proposal would see that banks are able to better evaluate the level of risk that might be involved in crypto businesses like fintech, exchanges, payment protocols, lending and even custodial services.
OCC noted that banks must align with its policy of providing financial services to all. The regulator stated that before a bank can refuse to provide its services for anyone, it should be due to the risk management decision based solely on that individual or that particular company.
It further added that the current practice of excluding a customer because he operates in a particular industry is not in line with its policy. This is why this new regulation seeks to end this discriminatory practice.