Recent digital property custody clarity from the U.S. Office of the Comptroller of the Currency, or OCC, will likely impact institutional investors more, according to OKCoin CEO Hong Fang.
“The biggest impact will potentially be on institutional investors,” Fang informed Cointelegraph.
“Retail investors have a much wider range of existing choices (and preferences). I look forward to seeing more banks becoming more open to crypto, with potentially better banking channels, more public awareness, as well as more regulatory clarity. A better user experience ultimately wins.”
The OCC brings clarity
On July 22, the OCC clarified a previous regulative grey location of sorts around cryptocurrency custody. As an outcome, federally chartered banks now understand they can custody cryptocurrencies.
“The OCC ruling is definitely positive news for the nascent crypto industry, as crypto assets are now considered a legitimate asset class for banks,” Fang stated. “The OCC has made an important milestone by allowing traditional banks to provide custodial services that will apply to crypto, thereby strengthening the overall financial system and broadening financial inclusion.”
Fang included that the explanation permits more crypto market growth.
Will all banks provide crypto custody in the future?
Given the OCC’s clarity, matched with the crypto and blockchain market’s development for many years, reasoning may see banks ending up being progressively included. “Banks will continue to provide products and services that their customers demand,” Fang stated on the matter. “Therefore, offering crypto custody depends on each bank’s target market as well as the mainstream adoption of cryptocurrencies,” she included.
The crypto area likewise currently homes numerous entities pointed towards digital property services, consisting of different U.S. organizations different from the banking sector, Fang stated, including her interest in seeing how whatever plays together around the market in the coming days.