U.S. Payment System Rejects Crypto Bank’s Application
The Federal Reserve has denied a request from Wyoming-based crypto bank Avanti Financial Group to become part of the U.S. payment system on Friday. This marks the first time that a cryptocurrency company has attempted to join the Fed’s payment network, and it is also the first time that an application for such membership was rejected by America’s central bank.
Avanti had applied for a master account with The Federal Reserve Bank of Kansas City in order to provide banking services related to digital assets, including cryptocurrencies like Bitcoin and Ethereum, as well as other financial products and services associated with them. Despite their efforts however, they were unsuccessful in gaining access into this exclusive club due its unique nature which does not fit within traditional banking regulations or standards currently set by The Fed’s board members who are responsible for approving applications like these before they can be accepted into their system.
Although this decision may seem surprising at first glance given recent developments surrounding digital currencies across many countries around world, it is important note that Avanti still remains committed towards providing secure solutions when dealing with digital assets while continuing work closely alongside regulators so ensure compliance all applicable laws governing these activities wherever possible going forward.Read more at MarketWatch