{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1302.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1302.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1302.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1302.1.html"}],"law_id":83576,"edition_id":1,"section_id":83576,"structure_id":15468,"section_number":"6.2-1302.1","catch_line":"Virtual currency custody services","history":"2023, c. 303.","full_text":"A\n\nAs used in this section:\n\t\t\t“Custody services” means the role of a credit union in the safekeeping and custody of various customer assets.\n\t\t\t“Virtual currency” has the same meaning as provided in § 6.2-818.1.B\n\nA credit union may provide its customers with virtual currency custody services so long as the credit union has adequate protocols in place to effectively manage risks and comply with applicable laws and, prior to offering virtual currency custody services, the credit union has carefully examined the risks in offering such services through a methodical self-assessment process. If a credit union engages in virtual currency custody services, the credit union shall:1\n\nImplement effective risk management systems and controls to measure, monitor, and control relevant risks associated with custody of digital assets such as virtual currency;2\n\nConfirm that it has adequate insurance coverage for such services; and3\n\nMaintain a service provider oversight program, to the extent that the credit union engages with a service provider to provide virtual currency custody services, to address risks to service provider relationships as a result of engaging in virtual currency custody services.C\n\nA credit union may provide virtual currency custody services in a fiduciary or nonfiduciary capacity. In providing such services in a nonfiduciary capacity, the credit union shall act as a bailee, taking possession of the customer’s asset for safekeeping while legal title remains with the customer, such that the customer retains direct control over the keys associated with his virtual currency. To provide such services in a fiduciary capacity, the credit union shall obtain approval from the Commission as required by subsection D. In providing virtual currency custody services in a fiduciary capacity, the credit union shall receive control of the customer’s virtual currency, and new private keys shall be created to be held by the credit union. If approved by the Commission to provide virtual currency custody services in a fiduciary capacity, a credit union shall have authority to manage virtual currency assets as it would any other type of asset held in such capacity.D\n\nNo credit union shall provide virtual currency custody services in a fiduciary capacity without first obtaining authorization to do so from the Commission. The Commission shall not grant such authority until it finds that the credit union has satisfied the following requirements:1\n\nThe credit union’s capital structure is sufficiently strong to support the undertaking to provide virtual currency custody services;2\n\nThe personnel who will direct the proposed virtual currency custody services have adequate experience, training, and sufficient resources to ensure compliance with laws and regulations and to protect the operations of the credit union; and3\n\nGranting such authority to the credit union is in the public interest.E\n\nThe Commission may impose conditions on the authority granted to any credit union pursuant to subsection D and may suspend or revoke such authority if it finds that the credit union has failed to comply with any laws or regulations applicable to virtual currency custody services or any existing conditions imposed by the Commission or if the services are otherwise being provided in an unsafe or unsound manner.","order_by":null,"text":{"0":{"id":299510,"text":"As used in this section:\n\t\t\t“Custody services” means the role of a credit union in the safekeeping and custody of various customer assets.\n\t\t\t“Virtual currency” has the same meaning as provided in § 6.2-818.1.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":299511,"text":"A credit union may provide its customers with virtual currency custody services so long as the credit union has adequate protocols in place to effectively manage risks and comply with applicable laws and, prior to offering virtual currency custody services, the credit union has carefully examined the risks in offering such services through a methodical self-assessment process. If a credit union engages in virtual currency custody services, the credit union shall:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":299512,"text":"Implement effective risk management systems and controls to measure, monitor, and control relevant risks associated with custody of digital assets such as virtual currency;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":299513,"text":"Confirm that it has adequate insurance coverage for such services; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":299514,"text":"Maintain a service provider oversight program, to the extent that the credit union engages with a service provider to provide virtual currency custody services, to address risks to service provider relationships as a result of engaging in virtual currency custody services.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"5":{"id":299515,"text":"A credit union may provide virtual currency custody services in a fiduciary or nonfiduciary capacity. In providing such services in a nonfiduciary capacity, the credit union shall act as a bailee, taking possession of the customer’s asset for safekeeping while legal title remains with the customer, such that the customer retains direct control over the keys associated with his virtual currency. To provide such services in a fiduciary capacity, the credit union shall obtain approval from the Commission as required by subsection D. In providing virtual currency custody services in a fiduciary capacity, the credit union shall receive control of the customer’s virtual currency, and new private keys shall be created to be held by the credit union. If approved by the Commission to provide virtual currency custody services in a fiduciary capacity, a credit union shall have authority to manage virtual currency assets as it would any other type of asset held in such capacity.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"6":{"id":299516,"text":"No credit union shall provide virtual currency custody services in a fiduciary capacity without first obtaining authorization to do so from the Commission. The Commission shall not grant such authority until it finds that the credit union has satisfied the following requirements:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"7":{"id":299517,"text":"The credit union’s capital structure is sufficiently strong to support the undertaking to provide virtual currency custody services;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"8":{"id":299518,"text":"The personnel who will direct the proposed virtual currency custody services have adequate experience, training, and sufficient resources to ensure compliance with laws and regulations and to protect the operations of the credit union; and","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"9":{"id":299519,"text":"Granting such authority to the credit union is in the public interest.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"E"},"10":{"id":299520,"text":"The Commission may impose conditions on the authority granted to any credit union pursuant to subsection D and may suspend or revoke such authority if it finds that the credit union has failed to comply with any laws or regulations applicable to virtual currency custody services or any existing conditions imposed by the Commission or if the services are otherwise being provided in an unsafe or unsound manner.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D3"}},"ancestry":[{"id":15468,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13635,"metadata":{},"date_created":"2026-06-26 03:55:16","date_modified":"2026-06-26 03:55:16","permalink":{"id":264547,"object_type":"structure","relational_id":15468,"identifier":"1","token":"6.2\/II\/13\/1","url":"\/6.2\/II\/13\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13635,"edition_id":1,"name":"Credit Unions","identifier":"13","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:26","date_modified":"2026-06-26 03:45:26","permalink":{"id":264545,"object_type":"structure","relational_id":13635,"identifier":"13","token":"6.2\/II\/13","url":"\/6.2\/II\/13\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13000,"edition_id":1,"name":"Depository Institutions and Trust Organizations","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263685,"object_type":"structure","relational_id":13000,"identifier":"II","token":"6.2\/II","url":"\/6.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":84320,"structure_id":15468,"section_number":"6.2-1300","catch_line":"Definitions","url":"\/6.2-1300\/","token":"6.2\/II\/13\/1\/6.2-1300","metadata":false},{"id":79389,"structure_id":15468,"section_number":"6.2-1301","catch_line":"Effect of ownership of a share account","url":"\/6.2-1301\/","token":"6.2\/II\/13\/1\/6.2-1301","metadata":false},{"id":85919,"structure_id":15468,"section_number":"6.2-1302","catch_line":"Powers","url":"\/6.2-1302\/","token":"6.2\/II\/13\/1\/6.2-1302","metadata":false},{"id":83576,"structure_id":15468,"section_number":"6.2-1302.1","catch_line":"Virtual currency custody services","url":"\/6.2-1302.1\/","token":"6.2\/II\/13\/1\/6.2-1302.1","metadata":false},{"id":66827,"structure_id":15468,"section_number":"6.2-1303","catch_line":"Regulations","url":"\/6.2-1303\/","token":"6.2\/II\/13\/1\/6.2-1303","metadata":false},{"id":74426,"structure_id":15468,"section_number":"6.2-1304","catch_line":"Franchise tax exemption","url":"\/6.2-1304\/","token":"6.2\/II\/13\/1\/6.2-1304","metadata":false},{"id":58923,"structure_id":15468,"section_number":"6.2-1305","catch_line":"Making or circulating derogatory statements affecting credit unions; penalty","url":"\/6.2-1305\/","token":"6.2\/II\/13\/1\/6.2-1305","metadata":false},{"id":78451,"structure_id":15468,"section_number":"6.2-1306","catch_line":"Unlawful use of words \"credit union.\"","url":"\/6.2-1306\/","token":"6.2\/II\/13\/1\/6.2-1306","metadata":false},{"id":74777,"structure_id":15468,"section_number":"6.2-1307","catch_line":"Use of credit union name, logo, or symbol for marketing purposes; penalty","url":"\/6.2-1307\/","token":"6.2\/II\/13\/1\/6.2-1307","metadata":false}],"previous_section":{"id":85919,"structure_id":15468,"section_number":"6.2-1302","catch_line":"Powers","url":"\/6.2-1302\/","token":"6.2\/II\/13\/1\/6.2-1302","metadata":false},"next_section":{"id":66827,"structure_id":15468,"section_number":"6.2-1303","catch_line":"Regulations","url":"\/6.2-1303\/","token":"6.2\/II\/13\/1\/6.2-1303","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1302.1\/","history_text":"

This law was first created in 2023. The record of its establishment is cataloged in chapter 303<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":85919,"section_number":"6.2-1302","catch_line":"Powers","order_by":null,"url":"\/6.2-1302\/"}],"refers_to":false,"permalink":{"id":264561,"object_type":"law","relational_id":83576,"identifier":"6.2-1302.1","token":"6.2\/II\/13\/1\/6.2-1302.1","url":"\/6.2-1302.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1302.1\/","token":"6.2\/II\/13\/1\/6.2-1302.1","dublin_core":{"Title":"Virtual currency custody services","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1302.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Custody services<\/span>” means the role of a credit union<\/span> in the safekeeping and custody of various customer assets<\/span>.\n\t\t\t“Virtual currency<\/span>” has the same meaning as provided in § 6.2-818.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A credit union<\/span> may provide its customers with virtual currency<\/span> custody services<\/span> so long as the credit union<\/span> has adequate protocols in place to effectively manage risks and comply with applicable laws<\/span> and, prior to offering virtual currency<\/span> custody services<\/span>, the credit union<\/span> has carefully examined the risks in offering such services through a methodical self-assessment process. If a credit union<\/span> engages in virtual currency<\/span> custody services<\/span>, the credit union<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Implement effective risk management systems and controls to measure, monitor, and control relevant risks associated with custody of digital assets<\/span> such as virtual currency<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Confirm that it has adequate insurance coverage for such services; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Maintain a service provider oversight program, to the extent that the credit union<\/span> engages with a service provider to provide virtual currency<\/span> custody services<\/span>, to address risks to service provider relationships as a result of engaging in virtual currency<\/span> custody services<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A credit union<\/span> may provide virtual currency<\/span> custody services<\/span> in a fiduciary or nonfiduciary capacity. In providing such services in a nonfiduciary capacity, the credit union<\/span> shall act as a bailee, taking possession<\/span> of the customer’s asset for safekeeping while legal title remains with the customer, such that the customer retains direct control over the keys associated with his virtual currency<\/span>. To provide such services in a fiduciary capacity, the credit union<\/span> shall obtain approval from the Commission<\/span> as required by subsection D. In providing virtual currency<\/span> custody services<\/span> in a fiduciary capacity, the credit union<\/span> shall receive control of the customer’s virtual currency<\/span>, and new private keys shall be created to be held by the credit union<\/span>. If approved by the Commission<\/span> to provide virtual currency<\/span> custody services<\/span> in a fiduciary capacity, a credit union<\/span> shall have authority to manage virtual currency<\/span> assets<\/span> as it would any other type of asset held in such capacity. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No credit union<\/span> shall provide virtual currency<\/span> custody services<\/span> in a fiduciary capacity without first obtaining authorization to do so from the Commission<\/span>. The Commission<\/span> shall not grant such authority until it finds that the credit union<\/span> has satisfied the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The credit union<\/span>’s capital<\/span> structure is sufficiently strong to support the undertaking to provide virtual currency<\/span> custody services<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The personnel who will direct the proposed virtual currency<\/span> custody services<\/span> have adequate experience, training, and sufficient resources to ensure compliance with laws<\/span> and regulations and to protect the operations of the credit union<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Granting such authority to the credit union<\/span> is in the public interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The Commission<\/span> may impose conditions on the authority granted to any credit union<\/span> pursuant to subsection D and may suspend or revoke such authority if it finds that the credit union<\/span> has failed to comply with any laws<\/span> or regulations applicable to virtual currency<\/span> custody services<\/span> or any existing conditions imposed by the Commission<\/span> or if the services are otherwise being provided in an unsafe or unsound manner. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVIRTUAL CURRENCY CUSTODY SERVICES (\u00a7 6.2-1302.1)\n\nA. As used in this section:\n\t\t\t“Custody services” means the role of a credit union in the\nsafekeeping and custody of various customer assets.\n\t\t\t“Virtual currency” has the same meaning as provided in §\n6.2-818.1.\n\nB. A credit union may provide its customers with virtual currency custody\nservices so long as the credit union has adequate protocols in place to\neffectively manage risks and comply with applicable laws and, prior to offering\nvirtual currency custody services, the credit union has carefully examined the\nrisks in offering such services through a methodical self-assessment process. If\na credit union engages in virtual currency custody services, the credit union\nshall:\n\n 1. Implement effective risk management systems and controls to measure,\n monitor, and control relevant risks associated with custody of digital assets\n such as virtual currency;\n\n 2. Confirm that it has adequate insurance coverage for such services; and\n\n 3. Maintain a service provider oversight program, to the extent that the\n credit union engages with a service provider to provide virtual currency\n custody services, to address risks to service provider relationships as a\n result of engaging in virtual currency custody services.\n\nC. A credit union may provide virtual currency custody services in a fiduciary\nor nonfiduciary capacity. In providing such services in a nonfiduciary capacity,\nthe credit union shall act as a bailee, taking possession of the\ncustomer’s asset for safekeeping while legal title remains with the\ncustomer, such that the customer retains direct control over the keys associated\nwith his virtual currency. To provide such services in a fiduciary capacity, the\ncredit union shall obtain approval from the Commission as required by subsection\nD. In providing virtual currency custody services in a fiduciary capacity, the\ncredit union shall receive control of the customer’s virtual currency, and\nnew private keys shall be created to be held by the credit union. If approved by\nthe Commission to provide virtual currency custody services in a fiduciary\ncapacity, a credit union shall have authority to manage virtual currency assets\nas it would any other type of asset held in such capacity.\n\nD. No credit union shall provide virtual currency custody services in a\nfiduciary capacity without first obtaining authorization to do so from the\nCommission. The Commission shall not grant such authority until it finds that\nthe credit union has satisfied the following requirements:\n\n 1. The credit union’s capital structure is sufficiently strong to\n support the undertaking to provide virtual currency custody services;\n\n 2. The personnel who will direct the proposed virtual currency custody\n services have adequate experience, training, and sufficient resources to\n ensure compliance with laws and regulations and to protect the operations of\n the credit union; and\n\n 3. Granting such authority to the credit union is in the public interest.\n\nE. The Commission may impose conditions on the authority granted to any credit\nunion pursuant to subsection D and may suspend or revoke such authority if it\nfinds that the credit union has failed to comply with any laws or regulations\napplicable to virtual currency custody services or any existing conditions\nimposed by the Commission or if the services are otherwise being provided in an\nunsafe or unsound manner.\n\nHISTORY: 2023, c. 303.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}