Virginia Governor Glenn Youngkin has signed into law a bill allowing state-registered banks to provide custody services for virtual currencies. Reported by The Block.

The House of Delegates and the Senate adopted the document without a negative vote.

Introducing the law, Republican delegate Chris Head announced that the law would go into effect on July 1, 2022, and would allow financial institutions to hold the private keys of one’s wallets.

The rules will oblige banks to have “adequate protocols” and to “scrutinize risks”. But the bill’s co-sponsor, Democrat delegate Mark Kim, said what exactly the system would look like remains to be worked out with the banking regulator and the relevant state commission.

“I think this is a great way to start realizing the idea of ​​cryptocurrencies for our state and the rest of the country. We wanted people to describe it as something that could be physically possessed. “You can go to the bank, deposit your virtual currency and provide enterprise-grade security.”

According to Kim, many people may be “nervous” about blockchain, but everyone is familiar with banks.

“Cryptocurrency is something that everyone should pay attention to. This is an emerging financial asset with growing popularity that has significant potential for economic development in the areas covered,” said Chris Head.

He said the idea for the bill came from Texas. In June 2021, that state’s Department of Banking allowed local banks to hold digital assets.

Recall that a similar bill was passed in Nebraska in May. At the federal level, the Office of the Currency Controller within the U.S. Treasury has allowed financial institutions to hold cryptographic keys since July 2020.