by Matthew Russell Lee, Patreon Book Substack
SDNY/CHINATOWN, Dec 12 – The dubious nature of cross-border banking and crypto regulation is highlighted by Hong Kong-based Solowin Holdings bragging it is near buying a US bank charter - with nothing in it. See below.
Fair Finance Watch has filed detailed comments with the OCC including about the lack of Community Reinvestment Act and other safeguards (this the day after it live tweeted the sentencing of Terra Labs / LUNA's Do Kwon) but on December 12 Comptroller Gould bragged
- OCC Decision to Conditionally Approve First National Digital Currency Bank, National Association (PDF)
- OCC Decision to Conditionally Approve Ripple National Trust Bank (PDF)
- OCC Decision to Conditionally Approve BitGo Bank & Trust, National Association (PDF)
- OCC Decision to Conditionally Approve Fidelity Digital Assets, National Association (PDF)
- OCC Decision to Conditionally Approve Paxos Trust Company, National Association (PDF)
We'll have more on this. On September 8, the Office of the Comptroller cryptically announced via Bulletin that "whether a bank has engaged in politicized or unlawful debanking is a factor the OCC may consider, on a case by case basis, in determining the bank’s CRA rating." So will the banks that turned away - or bad mouthed - crypto firms now be downgraded under CRA?
On Solowin, chair Peter Lok said "this clean-charter opportunity would provide us with the ultimate strategic flexibility to innovate, scale our fiat-based services." That it, directly into FDIC-insured banking with little review, by buying an empty shell. This should and will be questioned.
***
Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.
Feedback: Editorial [at] innercitypress.com
