The governor of Minnesota signed into law a bill allowing banks and credit unions to offer Bitcoin custody services to their customers.
Under the new law, financial institutions operating in the state will be able to legally offer services such as storing, managing, and protecting the private keys of Bitcoin and other digital assets on behalf of their clients.
The law regulates banks’ digital asset custody activities under the heading “Virtual Currency Custody Services.” According to the regulation, financial institutions will be required to conduct virtual asset custody services in a secure and auditable manner. Furthermore, written policies and procedures will need to be established regarding risk management, cybersecurity, internal control mechanisms, business continuity, and compliance processes.
The bill defines “Virtual Currency Custody Services” as the storage and management of Bitcoin and other digital assets, or cryptographic private keys providing access to these assets, on behalf of other individuals. Under the regulation, banks will be able to offer these services in a non-custodial capacity. The law officially came into effect with the governor’s approval.
*This is not investment advice.
