Financial Institutions: FDIC Issues Request for Crypto Activities

04/08/2022 Larry Brown
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The FDIC issued FIL-16-2022 to request information on supervised institutions if they intend to engage in, or they are currently engaged in, any activities involving or related to crypto assets. Crypto-related activities can have significant risks impacting financial stability, safety and soundness, and consumer protection.

The FDIC notes that there is little consistency in the definitions associated with many crypto assets and crypto-related activities, which makes it difficult to categorically identify these assets and activities. If you are engaged in or considering engaging in crypto activities, the FDIC is requesting necessary information to perform a risk assessment on the activities. Information will vary on a case-by-case basis. However, the initial notification to the FDIC Regional Director should describe the activity in detail and provide the institution’s proposed timeline for engaging in the activity. The FDIC will review the notification and information received, request additional information as needed.

This is probably the first of many steps regarding crypto activities as the government and regulators continue to better understand the technology, the risks, and the impact to the financial services industry.

Let us help you and your institution in learning more about crypto activities and how they are impacting the financial services industry. Contact Larry Brown, Financial Institutions Leader, at lbrown@vlcpa.com or 800.887.0437.

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