The US Office of the Comptroller of the Currency (OCC) has taken an important step in their drive towards technological innovation with the institution of their Office of Financial Technology on the 30th April. Headed by Prashant Bhardwaj and opening on the 10th June, this office will allow the regulatory body to keep up with the accelerated advances being made in the banking industry.

OCC is an autonomous office of the US Treasury Department and works to supervise the national commercial banks, which are Federal Reserve members and are insured by the Federal Deposit Insurance Corporation (FDIC). Plans for the office of Financial Technology were floated in October last year and integrate with the existing Office of Innovation, which was established in 2017.

The OCC has previously issued statements warning banks and other financial institutions from dealing with cryptocurrencies. A joint statement by the OCC, FDIC, and Federal Reserve Board at the onset of the year reiterated their stand that banking organizations should not be encouraged to provide services to customers transacting with cryptocurrencies, on account of the risks they present. Despite this, the OCC has made it clear that members are not prohibited from facilitating cryptocurrency transactions as a general principle.

The establishment of the Office of Financial Technology will certainly increase access to technological advancements and streamline the utilization of those advancements in the banking industry. It will allow members to safely provide services to cryptocurrency customers, while still complying with the regulations of the OCC in a regulated and secure environment. Furthermore, the OCC's further involvement in the FinTech community will also help in creating a more secure environment for banks and cryptocurrency customers by bringing greater transparency and security to the banking system.



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