Hong Fang, the CEO of the cryptocurrency exchange OKCoin, said that recent digital asset custody clarity from the US Office of the Comptroller of the Currency (OCC) will likely affect institutional investors more.
“The biggest impact will potentially be on institutional investors.”
“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.”
It has been reported that the OCC clarified a former regulatory grey area of sorts around cryptocurrency custody. As a result, federally chartered banks now know they can custody cryptocurrencies.
Hong Fang, CEO of @OKCoin, says the impact of the recent #OCC #regulatory clarity benefits big-money players, @benjaminpirus reports https://t.co/WBRaBUzRhB — Cointelegraph (@Cointelegraph) August 2, 2020
However, Fang said:
“The OCC ruling is definitely positive news for the nascent crypto industry, as crypto assets are now considered a legitimate asset class for banks. 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.”
She added that the clarification allows for further crypto industry expansion.
Given the OCC’s clarity, matched with the crypto and blockchain industry’s growth over the years, logic might see banks becoming increasingly involved.
“Banks will continue to provide products and services that their customers demand. Therefore, offering crypto custody depends on each bank’s target market as well as the mainstream adoption of cryptocurrencies.”
Thus, Fang said that the crypto space also already houses several entities pointed toward digital asset solutions, including various US institutions separate from the banking sector by adding her interest in viewing how everything plays together around the industry in the coming days.