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Credit Unions and Crypto Firms can Collaborate – National Regulator says

The National Credit Union Administration(NCUA) has provided an update about possible partnerships between Federally Insured Credit Unions (FICUs) and Crypto firms in the United States.

In a letter addressed to the Board of Directors and Chief Executive Officers of the FICUs, the NCUA says it does not “prohibit” collaborations between FICUs and Cryptocurrency entities as long as “certain conditions are met.”

According to the official statement by the NCUA, Credit Unions in the United States will be able to trade and hold digital assets with third-parties crypto providers.

“This includes facilitating member relationships with third parties that allow FICU members to buy, sell and hold various uninsured digital assets with the third-party provider outside of the FICU,”

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Vice Chairman of the NCUA Kyle Hauptman provided more insight on the letter while talking to CoinDesk.

“Credit unions have been watching endless outflows of cash to crypto exchanges, and many people would rather use their primary financial institution for their first foray into crypto investing,” Hauptman said.

He added:

“Today’s guidance helps both concerns and gives a new revenue stream to credit unions [that] want to try it out. Financial services has always been ‘adapt or die’ and I don’t want credit unions to go the way of Blockbuster Video because we, the regulators, prevented innovation.”

About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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