Federal Reserve: Digital asset bank Custodia's business plan may pose a threat to itself and crypto customers

The U.S. Federal Reserve said Custodia, the digital asset bank that applied for a master account, had “significant deficiencies in its ability to manage the risks of its activities” and cast doubt on its ability to handle basic security measures and comply with banking laws regarding money laundering, adding that Custodia’s business plan may not only A threat to itself, but also to the cryptocurrency clients it seeks to serve. Foresight News previously reported that in January this year, the Federal Reserve once again rejected the application request of the digital asset bank Custodia Bank to accept the supervision of the Federal Reserve.