Fed Orders Cessation of Crypto-Friendly United Texas Bank Operations

Bittime - The US Federal Reserve has issued a cease and desist order to United Texas Bank, a bank known for its crypto-friendly policies. 

The order cited “significant deficiencies” in the bank's risk management system and its relationship with crypto asset customers. Read the complete news!

Fed Inspections Reveal Serious Problem

A Fed inspection conducted in May found multiple problems with United Texas Bank's corporate governance structure. The bank's board of directors and senior management were deemed "negligent" in their oversight of the institution.

The main deficiencies identified by the Fed relate to foreign correspondent banking and virtual currency customers. The bank was found to have deficiencies in its risk management practices and compliance with anti-money laundering regulations.

Read also: FED Interest Rate Cut Affecting Bitcoin (BTC) Price?

United Texas Bank Takes Corrective Steps

United Texas Bank, which employs 75 people and manages about $1 billion in assets, has acknowledged the shortfall and is taking steps to address it. The bank has committed to strengthening its compliance with the Bank Secrecy Act and its anti-money laundering program. 

Additionally, United Texas Bank has agreed to submit a formal plan to increase board oversight.

Government Approach to Crypto Bank

The Federal Reserve's action follows a similar move against another crypto-friendly bank, Customers Bancorp, in August. 

Dan Spuller, director of affairs at the Blockchain Association, believes that these actions may be part of a coordinated government effort to prevent banks from collaborating with the cryptocurrency industry, which may be dubbed “Operation Cutoff 2.0.”

Conclusion

The Fed's order to United Texas Bank serves as a reminder of the regulatory challenges faced by banks operating in the cryptocurrency space. Although the industry continues to grow, it is subject to increasing scrutiny from regulators seeking to ensure compliance with anti-money laundering laws and other financial regulations.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn How to Buy Crypto on Bittime.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.