Basel draft rules make crypto too costly for banks to trade, says industry
Proposed rules would make "bank involvement in the cryptoasset market cost-prohibitive from a capital perspective," industry associations have told regulators. Nine banking industry associations have submitted a letter to the Basel Committee on Banking Supervision (BCBS) in response to its proposal to introduce stringent capital requirements for banks looking to hold crypto assets on their books.In June of this year, the BCBS had published a consultation paper which assigned a 1,250% risk weight to Bitcoin (BTC), meaning that banks would need to hold $1 in capital for each $1 worth of....
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The Israel Tax Department has drafted new cryptocurrency tax rules that consider Bitcoin as an asset, eligible for capital gains taxes. The cryptocurrency community in Israel now has some clarity about the legal status of Bitcoin in their country. The country’s tax authorities have recently announced that Bitcoin and other cryptocurrencies will be considered as assets and are taxable. The legal status of Bitcoin has always been a grey area in many countries across the world. But with the Israeli authorities clarifying their stance over the cryptocurrency, people can now manage their tax....
The biggest U.S. and European banks oppose strict new rules that would require them to set aside a dollar in capital for every dollar of bitcoin they own.
The Basel Committee on Banking Supervision has proposed dividing crypto assets into two groups and regulating them based on their market, liquidity, credit, and operational risks to banks. Cryptocurrencies, such as bitcoin, will be subject to “a new conservative prudential treatment.” Crypto Regulation Proposed by Basel Committee on Banking Supervision The Basel Committee has proposed regulating crypto assets based on their risks to banks. The Bank of International Settlement (BIS) published the committee’s public consultation on “preliminary proposals for the....
A first-of-its-kind study published by the Basel Committee on Banking Supervision details that the world’s largest financial institutions are exposed to roughly €9.4 billion (US$9 billion) in crypto assets. The research paper authored by the Basel Committee’s secretariat Renzo Corrias further explains that out of all the banks’ total risk exposure, cryptocurrency exposure is estimated to be around 0.01% of total exposures. Banks Have $9 Billion in Cryptocurrency Exposure Equating to Roughly 0.01% of Total Risk Exposure A recent study published by the Basel....
The Federal Reserve is set to open a new chapter in the US Basel III debate next week, and for Bitcoin policy advocates the stakes are unusually clear: whether the largest American banks will keep inheriting a capital regime that treats bitcoin as effectively untouchable. The fight centers on Basel’s 1,250% risk weight for certain […]