Back in May, Texas upheld the use of crypto in banks.
Someone from the Texas House of Reps has concurred that it is now legal for banks to keep Bitcoins for their customers.
Banks operating under Texas’s laws can now boldly accept and/or advice their clients to keep their bitcoins with them. This was made very clear to everyone just yesterday.
According to the Texas Department of Banking, banks are allowed to hold cryptocurrencies to customers but they must endeavor to keep to the rules and avoid the risks to their best capacity.
The agency thought it wise to discuss cryptocurrencies. It said that virtual currencies are different from fiat in the sense that they cannot be touched. From the explanation, listeners could understand that to manage one’s cryptocurrencies, there has to be a private key so that no one else can have access. However, if one is to accept the custodial services of a bank, the owner of the crypto must give the bank his or her private keys or the banks can create a new one and give to the customer.
The agency has also given the banks under its supervision the right to decide on any custody methods that best suit them. This means what Bank A chooses for a customer can be different from what Bank B chooses for another customer.
The agency also wants the banks who are willing to engage in this service to get appropriate insurance coverage.
This update to banks comes after the House of Representatives okayed the use of cryptocurrencies in May. Apart from Texas, Wyoming and Nebraska are other states where the banks can serve as crypto keepers to residents. Wyoming and Kraken Exchange have been in partnership for this purpose since September. Even banks operating under the guidelines of the Federal Government have gained approval to hold cryptocurrencies for U.S. residents since July last year.
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