What FIs Need to Know About Cryptos
Adoption of cryptocurrency has seen a remarkable increase over the last few years – growing to an overall market capitalization of over $150 billion in less than 10 years. The new market has resulted in new types of businesses that financial markets have never seen before. Collectively referred to as Virtual Asset Service Providers (VASPs), these include cryptocurrency exchanges, digital wallets, custodial services, and Bitcoin ATMs.
While many traditional banks and other financial services businesses have taken a wait-and-see approach, the explosive growth of this industry is requiring these institutions to take a more active role and determine how best to enter the market while still maintaining a risk-based approach to anti-money laundering (AML), know your customer (KYC), and Bank Secrecy Act (BSA) compliance.
This white paper takes a look at the
- Various types of cryptocurrencies in the market
- Some of the major cryptocurrency businesses or VASPs that financial instituitions should know about
- What regulators, including FinCEN, are saying
- What financial institutions should do in order to take a risk-based approach to cryptocurrency