Crypto custody faces regulatory death-roll
New measures to safeguard digital assets threaten to squeeze the life out of custody business, insiders fear
Banks stake their reputation on being able to keep your cash safe. But the custody of digital assets like bitcoin or tether is a riskier proposition.
So risky, in fact, that US regulators have issued guidelines that would force banks to hold punitive levels of capital against these digital assets – in effect “killing” crypto custody, say experts.
The accounting guidance is part of a wider squeeze on the crypto industry by US authorities who have been stung into action by last year’s failure of
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