Banking regulators want the toughest rules for cryptocurrencies

bitcoins fitted into round plastic covering

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.

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Source: TG Daily – Banking regulators want the toughest rules for cryptocurrencies

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