Banking regulators want the toughest rules for cryptocurrencies

The world’s most powerful banking committee is proposing a ‘new conservative prudential treatment’ for crypto-assets that would force banks to put aside enough capital to cover potential losses.

That would be the highest capital requirement of any asset, illustrating that cryptocurrencies and related investments are seen as far more risky and volatile than conventional stocks or bonds.

“Crypto-assets have given rise to a range of concerns including consumer protection, money laundering, and terrorist financing,” the committee said.

Most regulated banks currently have limited exposure to cryptocurrencies, but the committee warned that they could “present risks for banks as exposures increase, including fraud and legal and reputation risks. The committee also said that the growth of crypto assets could raise financial instability concerns and increase risks faced by banks.

the Guardian

Global banking regulators call for toughest rules for cryptocurrencies

Growth of crypto-assets threatens financial stability and could increase risks faced by banks, they warn

Read More

Bitcoin, Other Crypto Assets Targeted for Stiff Banking Regulation

The top global standard setter for banking regulation proposed a strict new rule that would require banks to essentially set aside a dollar in reserves for every dollar of bitcoin they own.

Read More

Basel Committee puts bank holdings in Bitcoin and crypto in its highest risk category

The panel said crypto presents increased risk due to price volatility and the potential for money laundering.

Read More