The world’s most influential banking regulator has recommended that banks holding Bitcoin allocate additional capital to fully cover losses.
The Basel Committee of the Bank for International Settlements proposed dividing cryptoassets into two groups: those that are eligible for consideration under current frameworks and those that are not.
The first category will include tokenized assets and stablecoins that will be eligible for trading under existing rules “with some changes and additional guidance”. However, an announcement made on Thursday suggested that Bitcoin and similar cryptocurrencies “because it poses additional and higher risks” He said it would fall into the second category. According to this category “a neoconservative will be subject to prudent treatment.”
The committee recommended a 1,250% risk weight for Bitcoin, Ethereum and other cryptocurrencies. This will require banks to hold capital equivalent to the face value of the risk:
Bitcoin (BTC) Hits $38,000
The news was interpreted as Bitcoin and cryptocurrencies are taken seriously in the crypto money market, and Bitcoin rose sharply to $ 38,800. Bitcoin is trading at $ 37,700 at the time of publication.