9 In the letter, we reminded firms that the first step when considering engaging in crypto-related activities is to establish that the activities are legally permissible, and that there are sufficient controls in place to ensure these activities can be conducted in a safe and sound manner and in compliance with all applicable laws.
Against the background of possible crimes that some crypto companies are now under investigation for, this is not a box-checking exercise. Our letter also lets banks know that they are expected to notify the Federal Reserve if they intend to engage in crypto-asset related activities and to engage in a robust supervisory conversation.