Administration Affirms Crypto Partnerships for Credit Unions

[waybesuricata]

Federally insured credit unions (FICUs) in the United States may partner with third-party providers to offer their members digital asset services.

These services may include enabling “FICU members to buy, sell, and hold uninsured digital assets,” according to the National Credit Union Administration (NCUA). In a recent letter, the NCUA emphasized that the authority of FICUs to engage in such partnerships already existed, provided certain conditions are met. In the case of federally insured, state-chartered credit unions (FISCUs) however, it rather depends upon local laws and regulations.

The NCUA is one of two federal agencies that provide deposit insurance to depositors in U.S. depository institutions. While the Federal Deposit Insurance Corporation (FDIC), insures commercial banks and savings institutions, the NCUA covers credit unions. As an insurer, the NCUA said it does not prohibit FICUs from establishing these relationships.


Source and continuation of news:  https://beincrypto.com/administration-affirms-crypto-partnerships-for-credit-unions/

The NCUA said that such relationships would be evaluated no differently than any other third-party relationships. It stressed that this depended on “a FICU exercising sound judgment and conducting the necessary due diligence, risk assessment, and planning when choosing to introduce or bring together an outside vendor with its members.” To this end, the administration added that FICUs should establish effective risk measurement, monitoring, and control practices for such third-party arrangements.

[nightcloud]

Federally insured credit unions (FICUs) in the United States may partner with third-party providers to offer their members digital asset services.

These services may include enabling “FICU members to buy, sell, and hold uninsured digital assets,” according to the National Credit Union Administration (NCUA). In a recent letter, the NCUA emphasized that the authority of FICUs to engage in such partnerships already existed, provided certain conditions are met. In the case of federally insured, state-chartered credit unions (FISCUs) however, it rather depends upon local laws and regulations.

The NCUA is one of two federal agencies that provide deposit insurance to depositors in U.S. depository institutions. While the Federal Deposit Insurance Corporation (FDIC), insures commercial banks and savings institutions, the NCUA covers credit unions. As an insurer, the NCUA said it does not prohibit FICUs from establishing these relationships.


Source and continuation of news:  https://beincrypto.com/administration-affirms-crypto-partnerships-for-credit-unions/

The NCUA said that such relationships would be evaluated no differently than any other third-party relationships. It stressed that this depended on “a FICU exercising sound judgment and conducting the necessary due diligence, risk assessment, and planning when choosing to introduce or bring together an outside vendor with its members.” To this end, the administration added that FICUs should establish effective risk measurement, monitoring, and control practices for such third-party arrangements.

If you can argue, crypto can be used as credit after a country announces it has legalized crypto as a medium of exchange for money and goods.