Crypto custody faces regulatory death-roll

Banks stake their reputation on being able to keep your cash safe. But the custody of digital assets like bitcoin or tether is a riskier proposition.

So risky, in fact, that US regulators have issued guidelines that would force banks to hold punitive levels of capital against these digital assets – in effect “killing” crypto custody, say experts.

The accounting guidance is part of a wider squeeze on the crypto industry by US authorities who have been stung into action by last year’s failure of