US banking regulators released a joint statement yesterday allowing banking organizations to provide safekeeping services for crypto like Bitcoin.
A key point in the statement covers the management of crypto keys, including the generation of these keys and taking the necessary precautions when they are lost or compromised.
Keys are an integral part of crypto ownership and security, and questions about custody are increasingly important, especially as more people worldwide expand into digital assets.
These US banking regulators outlined existing laws, regulations, and risk-management principles that will apply to crypto safekeeping services.
For one, the agencies outlined the importance of cryptographic keys, which could result in financial loss if these keys are lost or compromised. They added that banking organizations may be held liable for their customers’ losses.
They also urged these organizations to ‘consider the evolving nature of the crypto-asset market,’ which includes the underlying technology and having a risk governance framework that allows them to adapt to the risks involved in the safekeeping services they are providing.
Like other banking services, these services will also have to meet strict standards for anti-money laundering (AML) and counter-financing of terrorism (CFT), among other similar regulations.
As such, organizations that safeguard crypto for their clients must verify the identity of their customers and continuously monitor transactions for suspicious activity, among other things.
With more and more individuals owning crypto, there’s also a growing demand for highly secure crypto wallets.
Meanwhile, the UK saw the biggest jump among countries surveyed from only 18% in 2024 to 24% in 2025.
Non-custodial crypto wallets allow individuals complete control over their private keys. The reason for this is that you use these keys to sign transactions and prove that you really own your digital assets.
In contrast, custodial wallets are those in which third parties like banks and wallet providers hold your keys for you. It’s convenient but less secure than non-custodial wallets.
Aside from letting you control your keys, you can also secure the wallet app itself with a code and your biometric data. All these layers of security help ensure that only you can access your wallet.
It’s available for both iOS and Android devices, making it extra convenient to use while still being secure.
Owning this token gives you additional perks, like low transaction fees, early access to presales, and governance rights that allow you to vote on matters relating to the Best Wallet ecosystem.
It’s always good news when government agencies finally accept that digital currencies are the future. The statement providing banks with more clarity regarding crypto safekeeping services is one such example of this kind of news.
The part regarding crypto keys is significant as it stresses the role of banks in securing these keys and adds that providers may be liable if customers lose their digital funds in the event of a data leak or hack.
If you want to invest in crypto, do your own research. This is not financial advice.
