Crypto Regulations for Credit Unions: An Overview of What You Need to Know

Cryptocurrencies offer advanced opportunities but also pose many risks. Credit unions are eagerly seeking clarity on crypto regulation while seeking opportunities for their staff’s leadership training, distributing new financial products, and creating fintech partnerships in today’s fast-moving world.

Cryptocurrencies and blockchain technology have proven to be more challenging than expected. Credit unions are now exploring how to present “crypto” to consumers. According to union leaders, crypto regulations for credit unions lack clarity, which is a challenge in offering crypto products to members. Moreover, they will require specialized knowledge and training to know which apt crypto products will meet the needs of their members.

Even though there are positive signs, crypto products still have risks that are present. But despite these risks, there is a strong consumer demand for them given the high population of Millennials and Gen Z members. Credit unions need fintech partnerships that can provide expertise in this area.

Credit unions have started exploring cryptocurrencies and crypto products like custodial wallets, lending or investments, and digital identities for accounts. It has yet to gain a lot of traction in credit unions, though.

Crypto-regulation in credit unions is the elephant in the room. From July to October 2021, the National Credit Union Association (NCUA) shared a Request for Information and Comment to seek input from credit unions about “current and potential uses [for digital currencies] in the credit union system and the risks associated with them.” Among the concerns of credit unions is compliance management.

Not going into cryptocurrency (given the risks) might be a good choice, but your credit union members might miss out on critical opportunities. It might affect your ability to attract and retain members in the future. You can also ensure the safe access of members to crypto options.

Safekeeping services might be a good way to begin. Here, the credit union provides the crypto vault that can safeguard the numeric key that a member would need to access his crypto funds. This is considered a critical service.

Cryptocurrency can allow credit unions to present themselves as savvy partners with the latest financial services. Credit unions providing currency exchange services will help members access a safe facility given the alternatives.

Financial inclusion is one of cryptocurrency’s benefits. It gives the banked and unbanked a reasonable way to access their money. If your credit union has many immigrant members, this will be a better way to offer remittance services.

You might want to send out a survey to gauge whether your members are interested in cryptocurrency. A seminar might be helpful to your members to clarify any confusion or curiosity about the subject.

Integritas Solutions can assist your credit union with a Crypto Roadmap and Strategy. Their experienced team of financial services consultants will make sure that you’re prepared for the future. For more information, read more about it here:

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