Virginia State Senate: Banks Can Offer Bitcoin Custody Services

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Virginia’s State Senate overwhelmingly approved a legislative amendment request that now authorizes regular banks in Virginia to provide Bitcoin custody services.

House Bill No. 263, submitted by Delegate Christopher T. Head in January 2022, introduced the amendment to allow qualifying institutions to offer Bitcoin custody services in the state of Virginia.

“A bank may provide its customers with virtual currency custody services so long as the bank has 26 adequate protocols in place to effectively manage risks and comply with applicable laws.”

The measure cleared the Senate with a resounding 39-0 majority and is now awaiting Governor Glenn Youngkin’s signature. Banks that want to offer this service to their customers must meet three particular conditions outlined in the bill: they must develop appropriate risk management systems, have enough insurance coverage, and start a “cryptocurrency” risk supervision program.

The Senate, on the other hand, will demand that bank clients keep direct management of their virtual currency’s public and private keys.

“Acting in a fiduciary capacity, the bank shall require customers to transfer their virtual currencies to the control of the bank by creating new private keys to be held by the bank.”

Virginia Next in a Long List of US States Pushing for Bitcoin

Recent states promoting Bitcoin from legal tender to payment for taxes, and even tax incentives for miners include Texas, Florida, Ohio, Wyoming, Kentucky, Tennessee, Illinois, California, Arizona, and now Virginia.

Biden is set to make an Executive order Thursday that will order the study on regulating and issuing Bitcoin and ”cryptocurrency”.

  • The Biden order sets a 180-day deadline on reports involving ”the future of money”.
  • What role will Bitcoin and ”crypto” play in the new frontier.
  • Also looking into environmental impact.

Bitcoin mining incentivizes and scales the renewable energy industry.

Let the math talk.

Bitcoin continues producing blocks and regardless of what the administration decides or moves to do, all news is good for Bitcoin. The perfect storm is spinning the world toward Hyper-Bitcoinization, don’t get caught with your pants down.

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