Bitcoin Banking
Did you know that Wyoming is the first state in America to have legal Bitcoin Banking? Shortly there will be two Bitcoin-friendly banks in the State of Wyoming, that are overseen by the Wyoming Banking Commission and there are strict rules that these crypto banks must follow to maintain their Banking License.
Avanti Bank and Trust is one of the companies to have successfully secured a crypto bank charter from the Wyoming State Banking Board, making it the second entity to attain such a feat in the United States, according to a press release from them. This will permit them to operate as full-reserve banks, linking bitcoin and the federal reserve payments system.
With the new bank charter, Avanti says it plans to roll out a vast array of innovative products and services including Avit, a United States dollar-backed stablecoin, digital assets custody services, API-based online banking services, and more.
“Currently, the only type of U.S. financial institution that can provide final and simultaneous settlement of trades between digital assets and the U.S dollar- because it is the only type currently approved to handle both within the same legal entity – is a Wyoming special-purpose depository institution like Avanti. Wyoming is the only U.S. regulator with a bank supervisory and regulatory program for digital assets that is near completion.”
Avanti Bank in Wyoming says it will start offering commercial accounts in the first quarter of 2022.
Use a Wyoming Company to hold your Bitcoin
If you use a Wyoming LLC to hold your Bitcoin, it cannot be taken from you to satisfy a creditor that may come after you. Wyoming state officials said the depository institution gives businesses a way to hold digital assets legally that also provides greater protection in bankruptcy.
Chris Land, general counsel of the Wyoming Division of Banking, explained at a New York cryptocurrency summit that with a bank incorporated in the state, a bankruptcy judge would be “required by U.S. Supreme Court precedent to apply the laws of Wyoming to that contract in bankruptcy.”
“So you can be sure you’ll get your asset back,” Land said.
Wyoming Corporate Services Inc will be offering packages that will help you hold and bank your Bitcoin.