FIBA ALERT From The Compliance Committee

by | Apr 22, 2022 | Fiba News

The Federal Deposit Insurance Corporation (FDIC) issued a Financial Institution Letter (FIL) to address the engagement by FDIC-supervised institutions in crypto-related activities. All FDIC-supervised institutions that intend to engage in, or that are currently engaged in, any activities involving or related to crypto assets (also referred to as “digital assets”) should notify the FDIC.

Kleptocrats aBy “crypto asset,” the FDIC refers generally to any digital asset implemented using cryptographic techniques. The term of “crypto-related activities” for the purposes of the FIL includes acting as crypto-asset custodians; maintaining stablecoin reserves; issuing crypto and other digital assets; acting as market makers or exchange or redemption agents; participating in blockchain- and distributed ledger-based settlement or payment systems, including performing node functions; as well as related activities such as finder activities and lending. The FDIC clarifies that other activities may be included in this definition at a later date..

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