The USA Federal Reserve has denied a request from cryptocurrency financial institution Custodia Financial institution to rethink its membership software to the Federal Reserve System.
The Fed introduced its denial on Feb. 23 saying the Federal Reserve Board beforehand determined that Custodia’s software “was inconsistent with the required elements beneath the legislation.”
@federalreserve declares it has denied the request by Custodia Financial institution, Inc., for reconsideration of the Board’s determination final month on its software to be supervised by the Federal Reserve: https://t.co/ZYNUEoLeN1
— Federal Reserve (@federalreserve) February 23, 2023
In January, the Fed rejected Custodia’s software to develop into a member. Board guidelines permit candidates to request a reconsideration of membership choices.
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On the time of the preliminary rejection, the Fed claimed Custodia had an “inadequate” administration framework.
It additionally cited a joint declaration it made alongside the Federal Deposit Insurance coverage Company (FDIC) and Workplace of the Comptroller of the Forex (OCC) that claimed cryptocurrencies have been “inconsistent with secure and sound banking practices.”