2 - 4 minute read
The state of Louisiana has recently passed a bill allowing financial institutions in the state to provide “virtual currency” custodial services, including holding Bitcoin and other digital assets on behalf of their customers. In order to offer these services, institutions must have protocols in place to manage risk and comply with regulations, provide controls to measure and monitor relevant risks, confirm that they have adequate insurance coverage, and maintain service provider oversight. The bill allows for banks to offer these custodial services in both a non-fiduciary and fiduciary capacity.
For traders and investors, this new law provides an opportunity to store their Bitcoin and digital assets with a trusted financial institution rather than having to manage their own storage solutions. This could make it easier and more convenient for individuals and institutions to hold onto and trade cryptocurrency. It also provides an additional layer of security, as financial institutions are typically required to follow strict security protocols to protect their customers’ assets.
BREAKING: The Governor of Louisiana just signed a bill that allows financial institutions in Louisiana to custody #Bitcoin and digital assets for customers.— Dennis Porter (@Dennis_Porter_) June 21, 2022
The passage of this bill could also signal a growing acceptance of Bitcoin and digital assets by traditional financial institutions. This could lead to further mainstream adoption of cryptocurrency and potentially have a positive impact on the price of Bitcoin and other digital assets. However, it is important to note that the cryptocurrency market is still highly volatile and investors should carefully consider the risks before making any decisions. As always, it is important to do thorough research and due diligence before investing in any asset, including cryptocurrency.