The U.S. Office of the Controller of the Currency (OCC) stated that Protego did not meet its pre-conversion requirements and therefore its conditional approval has expired.
In these days when the crypto industry and the global economy are awash with bad news about banking, another banking problem has come to light. Institutional cryptocurrency custodian Protego’s conditional national trust banking contract has been terminated for not meeting the requirements.
Crypto Custodian Protego Takes a Hit
Cryptocurrency custodian Protego has been hit by the U.S. Office of Currency Regulatory (OCC), according to a report by Fortune.
The transformation of Protego to become a federally authorized bank that would allow it to store digital assets and grant other credentials privileges was thus shelved.
An OCC spokesperson told Fortune that Protego did not meet the pre-conversion requirements and therefore its conditional approval has expired. In addition, the OCC spokesperson said;
“Pre-conversion requirements included meeting minimum capital and liquidity requirements, as well as policies, procedures, systems and other measures to ensure the safe and sound operation of the bank.”
Greg Gilman, Protego founder and chairman of the board, told Fortune they have two different paths. Gilman stated that their first way was to “met the requirement to operate as a state bank with leasehold power in Washington.” On the other hand, Gilman stated that they chose re-applying to the OCC as the second option since their capital requirements were met.
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