One of the world’s largest investment banks, Goldman Sachs, will not open a unit that could deal with cryptocurrency trade in the near future. The reason for such a solution is the regulatory uncertainty, which is still obscured by cryptocurrencies. This is what Business Insider writes with reference to sources familiar with the situation.
Goldman Sachs has reduced the priority of trading cryptocurrencies in the list of cases that it can deal with in the digital asset market, sources said, adding that the future solution could be changed.
However, Goldman Sachs is not going to give up completely from the cryptocurrency. In the near future, it will be able to focus on custodian solutions for storing large cryptocurrency savings and engage in price tracking for institutional investors. In addition, the bank continues to provide its clients with access to futures for bitcoin and contracts for the difference, which allow them to bet on price changes without having to own the assets themselves.
“Despite the many-month expectation that Goldman will start trading bitcoin this summer, the investment bank called the audience for patience while he was studying the emerging industry,” Business Insider writes. “However, in recent weeks, the leadership has come to the conclusion that there are still too many steps to be taken, most of which are beyond their control, before a regulated bank will be allowed to trade foreign cryptocurrency, one source said.”
Goldman Sachs’s interest in foreign cryptocurrency exchange became apparent in October last year when reports appeared that the company had formed a group of employees in the unit for trading digital assets and investing. In December, Bloomberg reported that the bank expects to launch the relevant department not later than in June. It was expected that he would be part of the securities trading unit. In April, the bank hired Justin Schmidt as head of the market for digital assets.
In May, NYTimes wrote that Goldman Sachs is exploring the possibility of opening a cryptocurrency unit in the context of regulatory compliance and risk management. Schmidt was reported to be considering selling bitcoins for fiat if he receives a permit from the Federal Reserve and the New York State Banking Regulators.
Nevertheless, one of the sources said that the bank faced a regulatory barrier, but refused to disclose details. According to his information, Goldman Sachs was counting on some changes that have not happened.