U.S. banks are now allowed to offer cryptocurrency custody services, according to the Office of the Comptroller of the Currency (OCC). The move is seen as a major one for crypto adoption, as so far custody providers were limited to crypto-native businesses like Coinbase.

The first cryptocurrency hedge fund in the U.K. to win approval from the country’s regulators, Prime Factor Capital, is shutting down due to “insufficient demand from institutional investors.”

Apple co-founder Steve Wozniak is suing YouTube for the Google-owned video-sharing platform’s failure to stop cryptocurrency scammers from using his name in fake bitcoin giveaways, similar to the ones that affected Twitter last week.

Top stories in the Crypto Roundup today:

• U.S. Banks Can Now Offer Crypto Custody Services, Says Federal Regulator
• First Crypto Hedge Fund Licensed in U.K. Shuts Down
• Apple Co-Founder Sues YouTube Over Crypto Scams

At the time of writing, bitcoin (BTC) is trading at $9,499.98 (1.95%) with a daily Top Tier volume of $2.19 bn. As for ether (ETH), it is trading at $262.81 (8.34%) with a daily Top Tier volume of $1.25 bn. The MVIS CryptoCompare Digital Assets 10 Index is currently tracking at 3,349.96 (3.92%).

U.S. Banks Can Now Offer Crypto Custody Services, Says Federal Regulator

The Office of the Comptroller of the Currency (OCC) is letting nationally chartered banks in the U.S. provide custody services for cryptocurrencies, according to a public letter from Senior Deputy Comptroller and Senior Counsel Jonathan Gould.

The letter clarified any national bank can hold onto the cryptographic keys of a cryptocurrency wallet, effectively allowing them to hold crypto on behalf of clients.  It notes that banks “may offer more secure storage service compared to existing options,” and that using regulated custodians can help consumers and investment advisors.

Existing options, it’s worth noting, are firms in the crypto space like Coinbase, which need a state license to offer custody services to clients. Banks who now chose to offer custodian services will need to do so after developing and implementing “sound risk management practices.”

The letter reads:

“The OCC recognizes that, as the financial markets become increasingly technological, there will likely be increasing need for banks and other service providers to leverage new technology and innovative ways to provide traditional services on behalf of customers.”

The letter also reaffirms the OCC’s position in letting any national bank “provide permissible banking services to any lawful business they choose,” which includes cryptocurrency businesses that “effectively manage the risks and comply with applicable law.”

First Crypto Hedge Fund Licensed in U.K. Shuts Down

The first cryptocurrency hedge fund in the U.K. to win approval from the country’s regulators, Prime Factor Capital, is shutting down due to “insufficient demand from institutional investors.”

According to the firm’s CEO Nic Niedermowwe, delivered an average monthly performance “in excess of 4%,” but is nevertheless going down because of a lack of demand from institutional investors. The fund held more than 100 million euros in assets under management.

Crypto-focused funds had their second-worst monthly loss in nearly five years back in March, having lost, on average, 27% that month. Mainstream hedge funds, over the same period, had an average loss of less than 10%. March, it’s worth noting, was the month of the so-called crypto ‘Black Thursday’.

Financial News reports, citing sources, the firm struggled to get traction “in terms of raising assets” and that “it tried, in the past six to 12 months, to sell a stake in the management company.”

Apple Co-Founder Sues YouTube Over Crypto Scams

Apple co-founder Steve Wozniak is suing YouTube for the Google-owned video-sharing platform’s failure to, for months, stop cryptocurrency scammers from using his name in fake bitcoin giveaways, similar to the ones that affected Twitter last week.

Scammers reportedly use images and videos of Wozniak to convince YouTube users he is hosting giveaways where he promises to double the funds sent to him, according to a lawsuit filed in San Mateo County, California.

Those who transfer funds, however, receive nothing back. Wozniak isn’t the only celebrity being used to promote crypto scams, as Bill Gates, Elon Musk, and others have been impersonated as well. YouTube has nevertheless been “unresponsive” to Wozniak’s requests to take down the video.

Wozniak added that, in contrast, Twitter reacted the “same day” the accounts of Barack Obama, Joe Biden, and other high-profile figures were hacked to promote a fake bitcoin giveaway. Wozniak, along with 17 other victims, are asking the court to order YouTube to immediately remove the videos and warn its users about the scams.

“YouTube has been unapologetically hosting, promoting, and directly profiting from similar scams.”

They are also looking for compensatory and punitive damages from YouTube and its parent company Alphabet. In similar cases, YouTube defended itself arguing it was immune from liability under provisions of the federal Communications Decency Act. The 1996 law says that internet providers cannot be held liable for content posted on their platforms by users.

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