Global regulators are urging cryptocurrencies to follow the strictest rules of any asset bank capital, arguing that the requirements for bitcoin պահ holding such tokens should be much higher than those for ordinary stocks: bonds.
Banks affected by volatile cryptocurrencies need to have stricter capital requirements to reflect greater risks, says the Basel Committee on Banking Supervision, which sets the world’s strongest banking standards.
Its intervention came released report on Thursday, as policymakers around the world push for plans to regulate a fast-growing market.
The Basel Committee acknowledged that while the impact of banks on the emerging cryptocurrency industry was limited, “the growth of cryptocurrencies and related services may increase financial stability issues and increase the risk to banks.”
Among the risks he pointed out were market risks, credit risks, fraud, hacking, money laundering, and terrorist financing risks.
Some assets, such as shares, are included in the amended current rules on minimum capital standards for banks. Others, such as bitcoin, face a new “conservative” precautionary regime, he advises.
Stable coins, cryptocurrencies associated with traditional assets such as currencies, will also comply with existing rules if they are retained at all times. “Banks will have to control that this is ‘effective at all times,'” he added.
All other cryptocurrencies, including bitcoin etherium, would be subject to a new, heavier regime. The Basel Committee proposed a risk weight of 1,250%, in line with the strictest standards for banks’ exposure to risky assets.
This would mean that banks would actually have to keep capital equal to the impact of their risk, be prepared if the value of the asset was worthless. The impact of $ 100 bitcoin will result in a minimum capital requirement of $ 100, Basel said.
The standards will apply to assets that have been created decentralized finance (DeFi) և ineffective tokens (NFT), but the central bank’s potential digital currencies were beyond the scope of the consultation, he added.
Bitcoin is up 3% today, while ethereum is up more than 2%.
Basel offers come as global regulators face the rapid emergence of digital assets and growing investor interest. The US government also wants to play a more active role in controlling the $ 1.5 million cryptocurrency market, as there are fears that a lack of control threatens investors in a highly volatile speculative industry.
Some bankers think that Basel offers are too far-fetched. “If we apply punitive weight, what we are saying is that we do not want those assets in the banking system,” said the bank’s chief executive involved in the cryptocurrency.
“We’ve all seen what happens when you push out of a fairly well-regulated system into the wild. “Do regulators want adults to do business, or do they want teenagers to do business?”
State Street և: Citigroup: are among the banks that have stated that they aim to provide more cryptographic services to customers. Last week, UK-based Standard Chartered announced a joint venture with BC Group, a digital asset listed company in Hong Kong, to create a digital asset brokerage platform for clients across Europe.
The UD rules set out the level of liquid assets և capital requirements that the bank must separate so that it can be regulated without harming its customers or creating panic in the market.
Numerical tokens based on traditional assets, such as stocks, bonds, commodities և cash, will be placed in the first category of cryptocurrencies.
However, they should have had the same level legal rights because traditional assets, such as dividends or other cash flows, are not currently held by some.
The consultation ends in September.