The US OCC or the Comptroller of the Currency released a new regulatory proposal aiming to ban discriminatory practices against crypto businesses which are now under consideration. In today’s crypto news, we are reading more about the plan.
2020 was a very hard year for crypto but it seems that the last few months are now trying to compensate all holders for all bad that happened. Now, the Office of the Comptroller of the currency- the OCC, brings good news to the crypto industry. A new regulatory proposal issued by the OCC wants to make sure that the businesses will enjoy benefits when it comes to having a bank account like any other legitimate business. OCC also wants to end the silent discrimination against crypto companies and says that banks should now evaluate each company individually.
According to the “Dodd-Frank Act” and its mandate of fair access to financial services since 2014, the OCC stated multiple times that while banks are not obliged to offer more financial benefits to their customers as they have to make the services they do offer available to all customers except to the extent to the risk factors particular to the individual customer dictate otherwise. The “Fair Access to Financial Services” proposal aims to provide a better way of evaluating the risks of certain business-like exchanges, payment protocols, lending and custody services and more.
In order to make sure that the banks will provide fair access to customers to financial services, and to remain consistent with the longstanding OCC policies, the bank’s decision not to serve a particular customer has to be based on the individual risks management decisions about every individual customer but not on the fact that the customers are operating in an industry that is a subject to broad categorical exclusion by the banks.
It’s no secret that a huge number of crypto companies have difficulties operating in the United States because of the high level of bureaucracy and the absolute discretion that the banks offer when it comes to deciding whether or not to offer their services to a client. However, the OCC explains that they are willing to put an end to the Operation Choke-point’s legacy by pressuring the banks to cut off access to financial services in different parts of the economy and to also name these activities as “disfavored but not unlawful.”
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