Crypto Banking Update August 2024
🏦 Major banks, once skeptical of crypto, are now embracing it. This shift is vital as it legitimizes the space, drives mass adoption, and increases liquidity for Oxido Solutions’ trading bots. Here’s a roundup of the latest most relevant crypto banking news:
🇺🇸 The Federal Reserve has tightened its grip on Customers Bank, a crypto-friendly bank. The bank now must give a 30-day notice before dealing with new crypto companies and has 60 days to enhance its risk management and anti-money laundering (AML) protocols. This is a clear signal of the increasing scrutiny on banks engaged with digital assets.
🇭🇰 Mox Bank, a subsidiary of Standard Chartered, has introduced Bitcoin and ETH ETFs on its Mox Invest platform. This move is a significant step towards broader crypto adoption in Hong Kong, providing a regulated and user-friendly way for investors to diversify their portfolios with emerging digital assets.
🇬🇧 Xapo Bank has launched interest-bearing BTC and fiat accounts in the UK, making it the first to offer combined interest-bearing USD and Bitcoin accounts. This expansion solidifies Xapo’s position as a leading digital-first bank, further bridging the gap between traditional finance and digital assets.
🇺🇸 Morgan Stanley has become the first major Wall Street bank to offer BTC ETFs to its clients. Starting August 7, clients with a net worth of at least $1.5 million can now invest in Bitcoin ETFs, marking a significant step in integrating crypto into mainstream investment offerings. However, the bank remains cautious, restricting access to clients with high risk tolerance.
🇷🇺 The Bank of Russia expects the digital ruble to become part of everyday transactions by 2031. The central bank also plans to use the digital ruble for cross-border payments by 2025, signaling a significant shift towards digital currencies in Russia.
🇦🇪 The Commercial Bank of Dubai has introduced dedicated accounts for Virtual Asset Service Providers (VASPs) to manage client funds. This move aligns with the bank’s strategy to support the digital economy and strengthens the UAE’s position as a global hub for virtual assets.
🇮🇱 Bank of Israel has launched the “Digital Shekel Challenge” to explore the potential of a CBDC. Inspired by the BIS Innovation Hub’s “Project Rosalind,” this initiative has drawn significant interest from various sectors. Fourteen teams have been selected to propose innovative use cases, focusing on integrating the digital shekel with other payment systems and developing advanced functionalities. The results will be showcased in October.
These updates underscore significant advancements in the crypto banking sector, with major players becoming more engaged in the crypto space, though regulatory challenges remain. Stay tuned for more insights in Oxido Solutions’ next crypto banking roundup.
