US Wants Bitcoin Operators to Apply for Bank Status

US Wants Bitcoin Operators to Apply for Bank Status

US Wants Bitcoin Operators to Apply for Bank Status
The US government is open to integrate cryptocurrency companies, exchanges and trading platforms into the country’s banking industry as of late September 2017. Under the plan, the cryptocurrency players will be regulated by the US Department of the Treasury’s Office of the Comptroller of the Currency.

At a 2017 event hosted by the Federal Reserve Bank of Philadelphia, acting Comptroller of the Currency, Keith Noreika, said that they are actively studying effective methods of implementing a national licensing program for Bitcoin businesses.

“I wouldn’t be adverse to those people coming in and talking to the [Office of the Comptroller of the Currency] about how a charter could make sense for them. But that is a long process they’d have to go through, and just because you get in the door doesn’t mean you’re going to get out the door on the other side.”

Several US states have already authorized the operations of digital currency operators. Among them is New York, which has introduced its state-specific licensing initiative for Bitcoin called BitLicense. However, several startup companies, exchanges, businesses and trading platforms in the sector have voiced out their concerns over regulations like BitLicense due to high costs and impracticality in terms of compliance.

The acceptance of digital currency exchanges, as well as the introduction of a nationwide licensing program for trading platforms, are expected to trigger an increase in demand from institutional and retail traders in the US.

Other global developments in Bitcoin adoption

Meanwhile, in Japan, the government has implemented a nationwide licensing program for Japanese Bitcoin and digital currency exchanges. Among the operators already licensed as of late September are 11 major exchanges including BitFlyer.

In South Korea, the government has implemented measures to promote the virtual currency market to become more mature and well-regulated making the country the Ethereum powerhouse.