Bank Suspends Bitcoin Activities
FDIC
Federal Deposit Insurance Corporation
350 Fifth Avenue, Suite 1200, New York, NY 10118
New York Regional Office
January 13, 2023
Board of Directors
XXXXX XXXXX
Subject: Response to Notification of Engagement in Crypto-Related Activities
Dear Members of the Board:
On May 19, 2022, we received XXXXX XXXXX (Bank’s) notification regarding the Bank’s intent to offer customers the ability to buy, sell, and hold crypto-assets XXXXX through the Bank’s digital and mobile banking platforms in conjunction with XXXXX XXXXX in response to Financial Institution Letter (FIL), FIL-16-2022, Notification of Engaging in Crypto-Related Activities. On June 30, 2022, the FDIC sent a letter to the Board requesting that the Bank refrain from expanding this service while we considered the proposed crypto-related activity. On September 1, 2022, the FDIC sent a letter to the Board requesting information necessary to allow us to assess the safety and soundness, consumer XXXXX protection, and financial stability implications of such activities; CEO and President XXXXX XXXXX provided a response to this letter on October 31, 2022. On December 1, 2022, the FDIC sent a letter asking for confirmation that all relevant information regarding the Bank’s planned Bitcoin facilitation activity had been provided.
In his December 6, 2022 letter, CEO and President XXXXX XXXXX advised the FDIC that the Bank has indefinitely suspended its plan to engage in this third-party Bitcoin facilitation activity. The FDIC acknowledges the Bank’s updated status related to this activity, and the June 30, 2022 letter FDIC letter to the Board and subsequent letters requesting information have been superseded as a result of the Bank’s December 6, 2022 communication to the FDIC. We request that the Bank notify this office if the status of this activity, or other crypto-related activity, changes in the future.
Written correspondence should be addressed to my attention in the New York Regional Office, and sent as a PDF document through the FDIC’s Secure Email portal (https://securemail.fdic.gov/) using the following e-mail address: XXXXX@FDIC.gov. Information about how to use secure email and FAQs about the service can be found at https://www.fdic.gov/secureemail/.
This letter is confidential and may not be disclosed or made public in any manner under Part 309 of the FDIC Rules and Regulations (12 CFR Part 309). If you have any questions, please contact Case Manager Case Manager XXXXX XXXXX or XXXXX XXXXX or Review Examiner XXXXX XXXXX
Sincerely,
Frank R. Hughes
Regional Director
cc: XXXXX XXXXX