regulators: credit unions can partner with digital asset providers | Man’s pepper with trout
The National Credit Union Administration (NCUA) – the federal regulatory body that oversees credit unions – announcement that credit unions can partner with third-party digital asset service providers to give members access to cryptocurrencies and other digital assets.
Under the new guidelines, credit unions could partner with a third party to allow members to “buy, sell and hold various uninsured digital assets with the third party provider outside of the [federally insured credit union]. “
The change is being driven by the large outflow of cash that credit unions have seen heading into cryptocurrency exchanges, and members’ desire to use their primary financial institution to venture into the crypto markets. . For credit unions, the new guidelines offer new income opportunities in the ever-expanding digital asset market, as ordinary consumers have easy access to cryptocurrencies and other digital assets.
The NCUA predicts that further guidance may be needed with the continued growth of digital assets and the technologies that make them available, but that the new guidance was a necessary step in clarifying the existing powers of credit unions.