Pub. 17 2022-2023 Issue 3

Callie Schlieman Call me at 701.433.7430 – Based in Fargo www.bell.bank Member FDIC 35410 Reg. O loans | Holding company loans & lines of credit | Equipment financing | Participation loans Whether your loan is large or small, get faster turnaround from our experienced correspondent team. Partner with Bell for: Participation loans Bank stock and ownership loans Holding company loans and lines of credit Reg. O loans to bank employees, insiders or directors Equipment financing 35410 AD Nebraska Independent Community Bankers 2022_Callie.indd 1 4/7/22 11:33 AM This new guidance is giving rise to new policies, procedures, and safeguards for banks to have to implement. Ultimately, this is giving time to prepare for the inevitable cybersecurity attack, but this is not without cost to the bank. Carol Ann Warren, Bankers Alliance This new guidance is giving rise to new policies, procedures, and safeguards for banks to have to implement. Ultimately, this is giving time to prepare for the inevitable cybersecurity attack, but this is not without cost to the bank. The next question is: If a bank takes on servicing cryptocurrency customers, does this increase the risk of a cybersecurity incident? The answer: Probably. Ultimately, this will be more of a costbenefit analysis for the bank. According to a recent CNN article, there were over $1.9 billon worth of cryptocurrency stolen in 2022, so far. According to FinCEN, ransomware attacks are at an all-time high and only continue to increase. There is an argument that combining the banking with cryptocurrency will only lead to an increase in cyberattacks on banks, which is likely true. Is it worth it? The answer: Maybe. Banks need to have safeguards in place to protect current assets, private information, and to comply with the myriad of new guidance. There is an argument that the infrastructure is already there. Lastly, several agencies acknowledge the risk associated with servicing cryptocurrency and still push for banks to consider servicing this group. At the end of the day, a bank is one of the safest places to keep assets, virtually or physically. Therefore, banks may want to consider servicing this group, because banks have specialized in safekeeping throughout their existence. If they choose not to service this group, they may miss out on a lucrative market opportunity.  Cryptocurrency: Safe or “Sus”? — Continued from page 27 28

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